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Nuclear verdicts raise scrutiny of US casualty risk, Munich Re says
Munich Re cited a recent US jury award of USD 604 million tied to a fatal truck accident, underscoring that liability can extend beyond the immediate incident.
European businesses with exposure to the US may need to reassess their casualty risk as so-called nuclear verdicts continue to challenge insurers, according to Munich Re, the global reinsurer.
The reinsurer pointed to a recent US jury award of USD 604 million following a fatal truck accident, saying the case illustrates how liability can extend beyond those directly involved.
Munich Re said the freight broker in the incident was also found liable even though it did not employ the driver, and it had selected a carrier with a safety rating deemed satisfactory.
The reinsurer added that nuclear verdicts, typically defined as jury awards above USD 10 million, are a significant concern for the US casualty market, and that the exposure is not confined to US-based businesses through factors such as subsidiaries, manufacturing sites, products, contractors, vehicles, and distributors.