The AIR critique notes that the company itself admits that its figures have nothing to do with the costs of the legal system. The report does not examine jury verdicts, settlements, lawyers’ fees or any actual costs of what might generally be considered the “tort” system. Towers Perrin examines only insurance losses whether or not a lawsuit was even filed, (think "fender bender") plus insurers’ “guess” (historically, widely overstated) of what future losses could be, plus all of the industry’s bloated overhead (salaries, bonuses, lobbying costs, jet planes etc.). Plus, they cite themselves for much of the data, and they don't even disclose it!
Grade F, Towers Perrin. Show your work!
Comments