Risk Services Of Arkansas - July 2022

BUSINESS IS A NEVER- ENDING GAME

Over the past few months, we have seen a rise in economic inflation, but it’s not the only type of inflation increasing. Social inflation is also on the up, which means litigation costs and their impact on insurers’ claim payouts, loss ratios, and how much policyholders pay for coverage will be affected. But why is social inflation increasing?

HOW DO YOU PLAY THIS INFINITE GAME?

Corporate Mistrust

“The Infinite Game” by Simon Sinek is among the greatest motivational books you can get your hands on. He gives readers an inside scoop on the importance of adopting an “infinite mindset” while “playing the game” of business. Let’s look at some of the chapters that can help you and your business. Chapter 1: Business Isn’t a Finite Game The first chapter discusses why running a business isn’t a finite game. It focuses on how profit and income aren’t the only ways to measure success. Profit means nothing if you’re unable to survive current and future difficulties. This is why business is an infinite game — you don’t want to create something to “win” (finite); you want to build a foundation that will remain for future generations (infinite). Chapter 2: Essential Practices Sinek explains the strategies you need to play the infinite game. These skills include developing a “just cause,” creating trusting teams, studying your rivals, preparing for flexibility, and showing

Americans have developed a mistrust of big businesses over the last few years. A recent poll by Gallup found that 48% of Americans have a negative view of big business, and 75% say they have some, little, or no confidence in corporate America. Social inflation is driven by the need to do the right thing, so juries will try to send a message through their verdict, which can adversely affect big businesses dealing with controversial issues.

Civil Court Backlog

The pandemic completely upended how courtrooms operated. While some courtrooms utilized Zoom to carry on with cases, many others were delayed and are just now being resumed two years later. This has led to larger payouts overall.

courage to lead. He follows up with examples of companies that embody all five of these principles: Victorinox, the creator of the Swiss Army knife, Bill Gates and Microsoft, and the GPS company Garmin.

Suave Attorneys

Many plaintiffs hire lawyers who are well known in their area thanks to advertising and marketing. Many of these lawyers are well-versed in using emotion to tell a story and captivating the jurors. This can lead juries to side with the plaintiff regardless of the facts of the case.

Chapter 5: Building a Culture of Trust

A healthy work culture is based on trust. If your workers sense a lack of trust, that affects efficiency,

Litigation Financing

Another scenario becoming more common is the practice of third-party investors raising money to help plaintiffs pursue lawsuits against companies and their insurers. External funding allows more claimants the option to pursue litigation.

since no one will feel comfortable voicing their concerns or mistakes. Ford Motor

Company is a perfect example. Before 2006, the now-former CEO would reprimand and penalize workers who brought him bad information. This caused an unhealthy work environment and led to lower productivity. Sinek offers tips on how to create a culture where your employees are comfortable and confident. “The Infinite Game” teaches you that business is an endless game where you have to overcome many challenges. Successful businesses play the infinite game, constantly improving the business to become better. Sinek provides tips, solutions, and examples of how your business can thrive while playing the game. To get your hands on “The Infinite Game,” visit your local bookstore or online retailer.

Physicians’ Letters of Protection

A plaintiff’s lawyer can enter an agreement with a physician that guarantees medical expenses from the final settlement or verdict. In most cases, the plaintiff can only recover the expenses paid at a discount due to their insurance coverage. If the plaintiff visits a physician outside their insurer’s network under a letter of protection, they can claim higher damages.

2 • www.INSURICA.com • Specialized Insurance Programs for Specialized Industries.

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