Below is a brief snippet from the recent Insurance Asia News article “Rising litigation funding drives higher claims costs in Australia.” You can read the entire article (subscription required) here.
Martin Jones, Australia client executive for Xceedance, an insurtech, says that Australia appears to be following the U.S. trend of higher damage awards.
He points to a recent decision within the Australia High Court – Tapp v Australian Bushmen’s Campdraft and Rodeo Association Ltd – that overturned lower court rulings and granted A$6.75 million (US$4.6 million) in damages to a lady severely injured in a horse-riding competition. This ruling rejected the “obvious risk” argument for dangerous recreational activities.
“Litigation awards in the court system have set the bar high and raised claimants’expectations about what they consider they are entitled to,” said Jones.
Insurers’ own litigation models may also be to blame, he said, since these are not always conducive to early settlements, which can reduce costs for all parties.
Read the full article on Insurance Asia News (subscription required)