Industry Explores Class Action Reform

Several recent class-action lawsuits have caught the attention of the insurance industry, causing concerns that damage awards, especially for punitive damages, are increasing beyond reason. In an effort to reverse the trend, industry trade associations and other business groups are compiling studies and lobbying on Capitol Hill. "In the last few years, more insurance companies are being sued under class action," said Dan Zielinski, spokesman for the American Insurance Association in Washington, D.C. "Previously in the U.S., the industry was affected because their customers were being sued under class actions, but, in recent years, insurers are becoming more targets for class action law suits. In essence, insurers are almost hit two ways."