Liability insurers use a variety of tools to address adverse selection and moral hazard in insurance relationships. These tools can act on insureds in a manner that can be understood as regulation. We identify seven categories of such regulatory activities: risk-based pricing, underwriting,...

Using the best publicly available data on lawyers' liability claims and insurance – from the largest insurer of large law firms in the U.S., the American Bar Association's Standing Committee on Professional Liability, and a summary of large claims from a leading insurance broker – this...

This article addresses emerging gaps in consumer protection. Insurers, like companies in other industries, are revolutionizing their practices with artificial intelligence and big data. Insurers are finding new ways to price risks and policies, tailor coverage, offer advice to purchasers,...

Victims of intentional torts suffer more than $460 billion of damages each year. Unlike those injured by negligence, however, those injured by intentional acts often have no practical remedy. They cannot recover from judgment proof defendants. And no other part of the compensatory system...

The empirical study of happiness is all the rage. Scholars across disciplines are measuring, dissecting, and writing about happiness; trying to find the causes, correlates, and conditions of happiness; and trying to explain how people can be happier and sustain happiness. In recent years, legal...

In Hedonic Adaptation and the Settlement of Civil Lawsuits, John Bronsteen, Christopher Buccafusco, and Jonathan Masur offer an interesting application of the nascent research on hedonic psychology to a mature economic model of litigation. Informed by empirical research on individual happiness...

The happiness revolution is coming to legal scholarship. Based on empirical data about the how and why of positive emotions, legal scholars are beginning to suggest reforms to legal institutions. In this article we aim to redirect and slow down this revolution. One of their first targets of...

Insurers can no longer ignore the promise that the algorithms driving big data will offer greater predictive accuracy than traditional statistical analysis alone. Big data represents a natural evolutionary advancement of insurers trying to price their products to increase their profits, mitigate...

This chapter describes how liability insurance has contributed to the transparency of the civil justice system. The chapter makes three main points. First, much of what we know about the empirics of the civil justice system comes from access to liability insurance data and personnel. Second, as...

This essay explores how liability insurance mediates the boundary between torts and crime. Liability insurance sometimes separates these two legal fields, for example through the application of standard insurance contract provisions that exclude insurance coverage for some crimes that are also...