MALVERN, PA — U.S. tort costs surged 93.4% to $579.7 billion between 2014 and 2023, growing twice as fast as the economy and adding pressure to insurance premiums and business expenses, according to a new analysis by the Insurance Information Institute.
The findings, drawn from a 2026 international comparison prepared by the U.S. Chamber Institute for Legal Reform in collaboration with the Insurance Information Institute, known as Triple-I, show that litigation-related costs have expanded substantially faster than economic output and consumer prices.
Annual tort costs increased from $299.7 billion in 2014 to $579.7 billion in 2023, representing average annual growth of 10.38%.
Over the same period, nominal U.S. gross domestic product grew at an average annual rate of 5.17%, while inflation averaged 2.74%, according to the analysis.
The divergence indicates that the economic burden associated with civil litigation has increased relative to the broader economy, with implications for businesses, insurers and consumers.
“Litigation is outgrowing the economy. That gap doesn’t stay in the courtroom. It lands in claims, reserves and premiums,” Michel Léonard, Triple-I’s chief economist and data scientist, stated.
“Every dollar of tort costs adds to insurers’ losses and contributes to higher and less affordable insurance premium rates.”
The study defines tort costs as the economic expenses associated with providing civil remedies for harm caused by others, including monetary damages and related legal expenses.
Commercial insurance lines accounted for approximately $377.73 billion in tort costs in 2023, representing nearly two-thirds of the national total.
Personal insurance lines accounted for another $202.01 billion, illustrating the extent to which liability-related expenses affect both business insurance and household coverage.
Two categories accounted for more than three-quarters of U.S. tort costs.
Other liability costs totaled $249.31 billion, while personal automobile liability costs reached $188.13 billion. Combined, the categories represented 75.45% of the national total.
The concentration underscores the financial significance of liability claims involving businesses and motorists, two areas in which insurers must account for legal expenses and potential settlements when evaluating coverage costs.
The analysis also found that a substantial portion of tort costs falls outside traditional insurance arrangements.
Self-insured and uninsured parties absorbed $163.25 billion in costs during 2023, equivalent to 28.16% of the national total.
Those expenses represent a direct financial exposure for businesses and individuals that retain liability risks rather than transferring them entirely to insurance carriers.
Triple-I attributed the growth in tort costs to several developments, including larger settlements, aggressive advertising by plaintiffs’ attorneys and third-party litigation funding.
The organization also identified large jury awards, often described as nuclear verdicts, and expanding theories of legal liability as factors contributing to higher defense expenses and uncertainty.
The pressures are particularly relevant to product liability cases, commercial disputes and mass tort litigation, where the scale and complexity of claims can increase legal costs.
Third-party litigation funding, in which outside investors provide financing for legal claims in exchange for a potential financial return, is among the practices cited by the insurance industry organization.
The findings come from the U.S. Chamber Institute for Legal Reform’s 2026 report, “International Tort Costs: A Comparative Analysis of the United States, United Kingdom, EUG5, Australia, and Canada.”
The broader research examines tort costs across major developed economies, while the figures highlighted by Triple-I focus on the United States.
Sean Kevelighan, Triple-I’s chief executive officer, argued that the financial effects extend beyond insurance carriers to the businesses and households purchasing coverage.
“Businesses and consumers ultimately bear these costs, making greater transparency and fairness in the legal system essential to improving insurance affordability and supporting greater stability,” Kevelighan stated.
The findings place the growth of civil liability expenses within a broader insurance affordability debate, particularly as insurers incorporate claims experience, settlement trends and anticipated legal expenses into their pricing.
With tort costs rising substantially faster than both inflation and economic output over the period studied, the report identifies litigation expenses as a growing component of financial risk for U.S. businesses, insurers and consumers.
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