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Porfilio: ‘Most respondents believe attorney advertising increases auto insurance costs’

LEGAL NEWSLINE

Monday, November 25, 2024

Porfilio: ‘Most respondents believe attorney advertising increases auto insurance costs’

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Dale Porfilio | LinkedIn

A recent report from the Insurance Research Council (IRC) indicates a perceived connection between rising auto insurance costs and attorney advertising. This finding was highlighted in an October 29 news release from the IRC.

According to the report, titled "Public Opinions on Attorney Involvement in Insurance Claims," a majority of survey respondents, 60%, believe that attorney advertising leads to more claims. Additionally, 52% of respondents think this advertising increases their car insurance costs. These figures represent increases of five and seven percent, respectively, from previous surveys.

The survey also shows an increase in public exposure to attorney advertising. The IRC reports that 89% of respondents have seen such advertisements in the past year, up from 80% last year. Many respondents say they have noticed more legal ads targeting individuals injured in auto accidents. Specifically, 63% of those who have seen these advertisements identified them as related to auto accident injuries. Among those who filed a claim in the past three years, 62% reported seeing more attorney advertising compared to just 42% of those who had not filed a claim.

"Attorney advertising is a significant part of the legal landscape, particularly in auto injury insurance claims," said Dale Porfilio, president of IRC and chief insurance officer at the Insurance Information Institute (Triple-I). Porfilio added that most respondents believe such advertising increases auto insurance costs by encouraging more legal involvement, which leads to higher claim settlements and legal expenses.

The IRC was established in 1977 as an independent nonprofit research organization with support from property and casualty insurance companies and associations. It focuses on research and communication regarding its findings. The IRC conducts various types of research based on industry needs and public interest, including probability sample surveys, closed claim studies, and analysis of insurance statistical experience.

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