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Towers Perrin Flunks Torts Class

By Joe Consumer

Today, we just want to bring your attention to the slammin' new study from Americans for Insurance Reform (a coalition of many public interest groups from around the country) that critiques the bogus but, unfortunately, often quoted annual "studies" from insurance industry consulting firm, Towers Perrin.  This has to do with their "estimates" of the so-called "costs of the tort system."

The AIR critique notes that the company itself admits that its figures have nothing to do with the costs of the legal system.  The report does not examine jury verdicts, settlements, lawyers? fees or any actual costs of what might generally be considered the ?tort? system. Towers Perrin examines only insurance losses whether or not a lawsuit was even filed, (think "fender bender") plus insurers? ?guess? (historically, widely overstated) of what future losses could be, plus all of the industry?s bloated overhead (salaries, bonuses, lobbying costs, jet planes etc.).  Plus, they cite themselves for much of the data, and they don't even disclose it! 

Grade F, Towers Perrin.  Show your work! 

Full post as published by ThePopTort on January 28, 2010 (boomark / email).