Social inflation continues to influence the insurance industry, with its impact on losses intensifying each year. The increasing pressure on underwriting accuracy, strain on carrier relationships as programs suffer viability concerns, and friction in the reinsurance market are complex challenges that require proactive, specialized solutions.
The once tried-and-tested strategy of raising premium rates to mitigate the influence of social inflation has become inconsistent in today’s insurance landscape where striking the right balance with premium affordability is more imperative than ever to maintain growth.
This leaves Managing General Agents (MGAs), Managing General Underwriters (MGUs), and Program Administrators (PAs) with a pressing need for new and more effective solutions. But what does effective intervention look like in practice?
In our MGA Market Pulse: Key Insights for 2026 survey, we asked if a claims and risk management partner could help with social inflation, and the responses were mixed: 45.2% said yes, 38.7% said no, and 16.1% had no response. These results reflect the ongoing uncertainty that surrounds social inflation and the lack of straightforward solutions.
However, for MGAs, MGUs, and PAs aiming to minimize and stabilize the impact of social inflation, engaging with a claims and risk management partner can help maintain premium affordability, limit risk exposure, and prevent costly litigation that can lead to high jury damages. More so, a data-driven and resource-ready partner with proven expertise in claims that reach litigation allows MGAs, MGUs, and PAs to show clients that they are dedicated to managing volatility while growing programs in a challenging market.
Here are a few key services and solutions a claims and risk management partner should provide to effectively assist with social inflation.
Early Claims Intervention & Triage
Partners with highly experienced claims professionals and strong data analytics are in a better position to identify high-risk claims early to mitigate their impact and manage them appropriately. With dedicated resources and expertise, engaging a trusted partner can help MGAs, MGUs, and PAs prevent litigation and the potential of increased jury verdicts.
Litigation Management & Defense Strategy
For claims that do result in litigation, a qualified claims and risk management partner can play an integral role in the process. Partners that offer specialized legal support, mock juries, analytics, and jurisdiction-specific defense strategies ensure MGAs, MGUs, and PAs are best equipped for handling litigated claims. Knowing when and how to negotiate early settlements is also key for controlling the impact of social inflation.
Access to Advanced Predictive Analytics
In today’s environment, relying on historical claims data is no longer adequate or reliable. Periods of high social inflation can present unpredictable situations that reinforce the importance of predictive data analytics. Leveraging a claims and risk management partner with access to cutting-edge technology in the form of predictive data analytics is essential to staying ahead of trends instead of reacting to them.
Delivering Service Excellence for Clients
Social inflation calls for extra measures to sure up your client experience with strategies that focus on avoiding escalation and litigation. From transparent communications and fast resolutions to empathy-driven service, your partner should be prioritizing customer satisfaction and should also be able to provide effective strategies to streamline the claims process to deliver superior outcomes.
With years of experience dedicated to helping our partners manage social inflation, Gallagher Bassett’s dedicated Carrier Practice has developed an approach that is both effective and advantageous for strategic growth in a challenging climate. Our experts are trained to identify the potential for litigation and high verdicts and employ forward-thinking resolution strategies to avoid them.
Our proprietary advanced technology solutions, including predictive analytics and AI-powered decision-support tools, support MGAs, MGUs, and PAs with accurate underwriting, while our industry-leading expertise, credibility, and superior claims management experience help our clients put the customer first, delivering service excellence every time.
Connect with our team to learn more about how Gallagher Bassett can help you maintain profitability and continue to grow in 2026 despite the ongoing risk of rising social inflation, or discover more about our solutions for MGAs, MGUs and PAs.
