Washington, D.C. partner Jim Jorden spoke with Life Annuity Specialist about overall trends in class action litigation within the life insurance industry for the article “Insurers Struggle to Get on Top of Costly Threat of Class Action Suits.”
The industry publication discussed the evolving threat of class action lawsuits, a topic discussed at the American Council of Life Insurers’ annual meeting in Boston. Life Annuity Specialist reports that the news surrounding the number of class action lawsuits against life insurers is mixed, and the publication turned to Jorden for his insight.
According to Jorden, the number of class action lawsuits in the life insurance industry “clearly has declined dramatically since their heyday back in the mid-2000s.” While carriers did see an uptick in the last two years, there are “far fewer cases than in the past,” he said.
Jorden attributed the dip in part to earlier court decisions that declined to certify certain lawsuits as class actions. Judges said the circumstances involved the sale of products that differed enough that individual legal actions shouldn’t be consolidated.
He also cited improvements to industry products that are “operating in accordance with the market.”