The insurance industry-consulting firm, Towers Perrin, issued a “study” in December 2009 that estimates what it calls the overall “cost” of the U.S. tort system in 2008. Towers Perrin puts this figure at a whopping $254.7 billion, saying this translates to $838 per person. These figures are highly unreliable and completely inappropriate for evaluating the U.S. tort system. They have been effectively debunked over and over again. Towers Perrin has no excuse for its misleading and shoddy work. Policymakers and opinion leaders should be extremely wary of this document and how it is used. It gives no credence to the notion that tort costs are out of line.
