AI Is Fueling Lawsuits and Driving Up Your Insurance Premiums

Explore the Advocate app here: https://advocate.appEveryone in insurance is talking about how AI will make things more efficient. Lower costs, faster claims, smarter pricing. Katie came into this episode skeptical of that story and the data backed her up.AI is not just a tool for carriers. It is a tool for the other side too. And when plaintiffs, litigation funders, and legal tech startups get the same technology, the economics of filing a lawsuit change completely. The cost drops to almost zero. Volume goes up. And your premiums go with it.In this episode of the Advocate Insurance Desk, Katie and Grace break down the three channels through which AI is already driving commercial insurance premiums higher and show you exactly where it is showing up in the data right now.We cover:How AI is being used to find plaintiffs before they even know they have a case and what that means for claim volume across the marketWhy 98% of carriers say AI is fueling a rise in fraud, and how fabricated documentation and bot-submitted claims are getting priced into your renewalThe wave of AI-related class action filings hitting insurers directly, with 12 in the first half of 2025 alone already exceeding the full-year 2024 totalWhy liability pricing spiked 32.91% between October 2025 and April 2026 and what that inflection point actually signalsHow carrier concentration in markets like New York means rising liability costs have nowhere to go but into your premiumThe three things every operator should do right now with this information before their next renewalIf you own, operate, broker, or lend against commercial real estate, this episode gives you the data-driven context to understand why your liability costs are moving and what you can actually do about it.The efficiency story is real. But it is only half the picture. This is the other half.Chapters0:00 Introduction0:43 The Efficiency Narrative Everyone Is Pushing2:03 Market Briefing: Where the Market Stands Right Now4:54 What Is Actually Driving the Liability Spike7:03 The Plaintiffs Bar Gets AI10:17 You Do Not Have to Win a Lawsuit to Raise Premiums11:33 Channel 1: AI as a Lawsuit Enablement Tool12:40 Channel 2: AI as a Fraud Multiplier15:04 Channel 3: AI as a Liability Generator18:24 Seeing It in the Data