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Report

US bad faith claims

This report explores US bad faith claims trends for insurance companies between 2020 and October 2024.

As reported in Marsh UK’s Financial Institutions claims insights data report: 2023 year in review, Marsh UK claims data collected in 2023 indicated a sharp rise in recorded US bad faith claims against our insurance company clients.

In our US bad faith claims report, we take a closer look at the figures and examine why this increase may have occurred. Do we expect this trend to continue and what are the underlying issues at play?

US bad faith claims report

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What is a bad faith claim?

Bad faith is one of the biggest professional indemnity risks for any insurance company underwriting insurance policies in the US. Bad faith risks stem from an insurance company’s handling or defence of an insurance claim, including where handling is conducted on behalf of an insurer via a third party.