Social inflation has emerged as a critical force driving up the cost of liability insurance in the United States and beyond. Unlike economic inflation, which is tied to broader price increases in the economy, social inflation refers to the rising costs of insurance claims that exceed what can be explained by economic factors alone. This phenomenon is reshaping the commercial insurance landscape, with Captive insurance companies being increasinlgy utilized as a strategic alternative for organizations facing the challenges of social inflation.
A Florida-based residential affordable real estate client with a $1 billion total insurable value partnered with Captives Insure (C.I.) to renew a $60 million primary property policy and a $15 million excess general liability policy. Leveraging a historical property loss ratio of under 4% and a loss-free excess liability layer, C.I. secured significant reductions in both premium and collateral requirements. Through a bespoke captive insurance structure, the client recaptured millions previously spent in the standard insurance market and retained ~$4 million in gross written premium within their captive. C.I. was able to negotiate renewal terms and provide a collateral reduction of over 50% for their 2025 renewal along with a market rate premium decrease
The bill’s provisions are expected to enhance the state’s regulatory flexibility, support industry growth, and maintain South Carolina’s status as a leading captive domicile. S. 210 was introduced by Senator Turner and passed the Senate unanimously (43-0), reflecting broad bipartisan support for modernizing the captive insurance framework. The bill was passed in the South Carolina State Legislature today (May 8, 2025) and is on the way to Governor McMaster for signature.
Telehealth services have experienced unprecedented growth, particularly since the COVID-19 pandemic, with utilization increasing by an astounding 7060% nationally from 2019 to 2020. While this expansion has improved healthcare accessibility, it has also introduced new risks and challenges in patient care. Recent evidence suggests a concerning pattern of medical malpractice claims specifically related to misdiagnosis in telehealth settings.
SB 68 and SB 69 introduce stricter standards for certain lawsuits, limit recoverable damages, increase transparency in litigation funding, and update court procedures-all with the intent of fostering a more business-friendly legal environment in Georgia.
This week’s insurance and reinsurance landscape was shaped by macroeconomic pressures, rising risk exposures, robust financial results, and ongoing regulatory developments. Read more at the link below to see an overview of the key trends and news shaping the industry.
The story of America’s cost of living is, at its core, a reflection of how society has evolved-economically, culturally, and technologically-over the past century. To truly appreciate the magnitude of this transformation, it’s worth stepping back into the 1920s, an era marked by exuberance and innovation, and comparing it to the realities of 2025. The numbers, when laid side by side, offer a striking narrative not just about prices, but about the changing nature of American life.
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