Insurance Industry requests “Tort Reform” when it Reaps Billions in Profits, Denies & Delays Justice to Those Wrongly Injured or Killed
Insurance companies spend billions of dollars every year in advertising campaigns aimed at earning your trust and ensuring they will be by your side when you are faced with difficult times. State Farm Insurance Cos. alone spent a whopping $484 million on advertising in 2015.1 However, insurance companies often engage in tactics to deny legitimate claims and stall payments in the hope of wearing down victims to accept less than fair compensation, while rewarding executives with extravagant salaries and hoarding excessive profits.2
Insurance companies often grossly distort their true financial picture and allege that special laws with catchy names like “tort reform” are needed. The word “reform” is used deceptively to create the impression that there is something wrong with the tort system. When in fact, nothing is wrong with our tort system and lawsuits are dropping. Consider these facts:
- The number of all civil lawsuits filed in Illinois courts dropped 47 percent from 2010 to 2017.3
- The number of medical malpractice cases in Illinois has dropped 32 percent since 2003.4
- The number of asbestos lawsuits filed in Madison County has also declined. Since 2013, the number of cases filed is down 29 percent.5
Insurance companies are simply seeking to change and destroy settled law that gives ordinary people a fair shake in the courtroom. Their “reforms” are intended and designed to deny injured people their constitutional right to a jury trial under the 7th amendment of the U.S. Constitution.
Top Performing Insurance Companies in 20186
|Company||Profits||Fortune 500 Ranking|
|State Farm Insurance Cos.*||$8.79 billion||#36|
|Travelers Cos||$2.52 billion||#106|
|Liberty Mutual Insurance Group||$2.16 billion||#75|
*State Farm & Allstate are headquartered in Illinois
1 “State Farm unveils major rebranding.” Chicago Tribune. June 4, 2016.
2 Fortune; http://fortune.com/fortune500/wal-mart-stores-inc-1/
3 “Annual Report of the Illinois Courts, Statistical Summary,” 2010 to 2017, http://illinoiscourts.gov/SupremeCourt/AnnReport.asp
4 “Collar County Medical Malpractice New Suits,” Law Bulletin Publishing Company, reflecting filings through 2018 in 20 Illinois counties including Cook, DuPage, Lake, Kendall, Kane, Madison, St. Clair and Will.
5 Madison County Circuit Clerk Office. Brian Davis: [email protected].us
6 Fortune; Fortune Magazine. https://fortune.com/fortune500/2019/search/