Research and consulting firm Sedgwick released a report on May 31, which found that attorneys use a tactic called anchoring to win large verdicts. These verdicts are contributing to social inflation, which refers to insurance costs increasing faster than overall economic inflation.

According to the report, plaintiff attorneys engage in anchoring when they suggest a large monetary amount for a verdict. This figure then becomes an "anchor" in jurors’ minds as a reference point for evaluating damages. The plaintiff’s bar is successfully using this technique to secure nuclear verdicts, or verdicts larger than $10 million, as well as thermonuclear verdicts, or verdicts larger than $100 million. Anchoring "has proven to be extremely effective in juries returning multi-million-dollar verdicts in cases that otherwise might have been valued at a more reasonable amount," according to the report.

Nuclear verdicts have had a significant impact on the insurance industry, according to the Insurance Journal. One major effect is the strain on the availability and affordability of insurance coverage. As the size of jury awards increases, especially in cases involving trucking, pharmaceuticals, and product liability, insurers find it more challenging to underwrite these risks without raising premiums or reducing coverage limits.

Nevada residents are paying an average of 31% more for their car insurance than the average American driver, according to Bankrate. The average Nevada driver pays $3,068 each year for full coverage car insurance.

Nevada recently saw one example of a nuclear verdict that continues the trend of exceptionally high awards. According to Harris Beach PLLC, in October, a product liability case in Clark County resulted in awards totaling $228.5 million.

According to Sedgwick's website, the firm uses market data and proprietary technology to provide insights and business solutions.