S ocial inflation refers to the trend in which societal and legal trends continue to converge in the legal system and the courtroom, resulting in increased litigation, legal decisions tipping in favor of the plaintiffs, larger jury awards, and various other effects. In recent years, both the frequency and severity of liability claims have increased so much that no insurer, no matter how prominent, is unaffected. The cost of claims is going up, which, in turn, leads to rate increases across the board.
THE (NOT SO) SECRET RECIPE Craft the Perfect Follow- Up Email When it comes to securing leads, the follow-up email is hard to beat. One study found that a 12% response rate from two emails increases to 15%–16% with a third email. If you play your cards right, the success of your email marketing could, in large part, depend on your follow-up emails. So, how do you create ones that maximize positive responses from leads? Know your goals. You should have a clear idea of what you want to accomplish with your email campaign. Which metrics are most important to you? The number of times recipients open your follow-up email? That they click a link in the text? That they reply? Maybe tracking total conversions resulting from follow-up emails is important to you. Whatever the case, knowing your goals is a good first step. Find the ideal number of follow-ups. Obviously, not following up at all is a recipe for abandoning several potential leads. However, sending too many follow-ups can leave potential leads annoyed and unwilling to look into your business. According to several studies, the ideal number of follow-up emails is no less than three, but no more than seven. Time your follow-ups right. You don’t want to space your emails so far apart that leads forget about you, but you also don’t want to spam their email box so often that they get annoyed. A good rule of thumb is to wait at least 48 hours before sending a follow-up email after the initial email. After that, wait 2–4 days before sending another. Craft appealing content. This point is worth its own article, but briefly put, your follow-up email content is incredibly important. Create a subject line that will grab readers’ attention. Then, be polite, direct, friendly, and personable in each email. As you send out more follow-ups, become more specific about the deal you’re offering and make it more enticing. Above all, you should constantly tweak your follow-up content and overall strategy as you gain new information. As you continue to create follow-up emails, you’ll learn what works best.
There are four key factors that drive social inflation in this day and age.
1. Juror’s Perspective: Since the 2008 financial crisis, there has been a growing anti- corporate sentiment in America, meaning that most jurors are consequently biased in favor of the plaintiff in the courtroom. 2. Litigation Funding: Claimants increasingly receive outside help from investors who pay their legal fees in exchange for a piece of the settlement. 3. Plaintiff’s Bar: The sheer number and overall savvy of plaintiff attorneys is growing. 4. Normalization of Nuclear Verdicts: Caps on punitive damages and damages related to pain and suffering are shooting through the roof or going away altogether, so plaintiffs can receive more and more in settlements. In order to properly respond to social inflation and prevent litigation, you need to choose the right partner in an insurance carrier. Here are a few qualities to look out for. 1. They take a comprehensive approach to preparing for and preventing harmful litigation. A comprehensive approach might include the use of cutting-edge evaluation tools, intentional litigation strategies, and using data from previous litigation to inform future decisions. 2. They provide expert counsel. These legal representatives will have the expertise to efficiently handle high-profile claims. 3. They provide you with high-end operators. These operators will help you prepare for litigation with mock juries and by identifying unfavorable cases early on. As social inflation continues, it’s our hope that justice still prevails in the courtroom, no matter the circumstances of the case itself.
2 • www.INSURICA.com • Specialized Insurance Programs for Specialized Industries.
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