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Panel warns insurance inertia is fueling larger nuclear verdicts
Speakers said the risk of a case becoming a so-called nuclear verdict can surface as early as first notice of loss, with the fallout increasingly showing up in casualty pricing.
A panel of brokers, claims and legal experts warned that insurers’ reluctance to update claims handling and courtroom defense strategies is helping plaintiffs’ attorneys win larger, more frequent nuclear verdicts.
During a session at InsuranceFest 2026, speakers argued that well-funded, data-driven plaintiffs’ firms are outpacing defenses built on decades-old playbooks, and that the widening gap is starting to show up in casualty pricing. Ashley Fetyko, a partner at Tyson & Mendes, said insurers and defense teams are being outmaneuvered as plaintiffs’ teams use litigation funding, artificial intelligence, and more sophisticated jury strategies, adding, “The biggest problem is us,” and arguing the industry must pivot.
The panel also questioned the conventional approach to defining a nuclear verdict as a fixed dollar threshold, saying disproportionality can be a more useful measure when non-economic damages are far removed from underlying medical costs or facts. Caryn Siebert, vice president of carrier engagement at Gallagher Bassett, said juries are increasingly influenced by emotion and the belief that companies should be punished, and that plaintiffs’ lawyers use carefully chosen language to frame defendants as unsafe or indifferent corporate actors.
The speakers said the risk of a case turning nuclear could emerge as early as first notice of loss, pointing to issues such as inconsistent discovery responses, poor witness preparation, or conduct that appears evasive. Siebert said early fact gathering and candid communication are critical, urging brokers, carriers, third-party administrators and defense counsel to avoid surprises and confront damaging facts quickly, with the fallout now visible in casualty pricing.