EPL Market Tightens After 18 Months of Rising AI Claims and Nuclear Verdicts
Updated
Updated · Insurance Business · Aug 17
EPL Market Tightens After 18 Months of Rising AI Claims and Nuclear Verdicts
1 articles · Updated · Insurance Business · Aug 17
Summary
Claims frequency and severity in employment practices liability have climbed over the past 18 months to two years, making the market more selective rather than uniformly hard.
AI is a key driver: employers are using automated hiring and performance tools that can trigger bias claims, while unrepresented claimants are also using AI to draft and file EPL disputes.
Broader disability definitions under the Americans with Disabilities Act, more pre-litigation demand letters and continued nuclear verdicts are pushing up defense costs, settlement expectations and pricing pressure.
James Walsh said brokers should focus less on the cheapest quote and more on carrier discipline, claims expertise, coverage wording and financial strength, especially as layoffs and restructurings typically lift EPL claims.
E-Risk, a Nationwide company, said stronger governance — including documented AI use, human oversight and updated handbooks — should help insureds secure better terms from committed carriers.