Home > Property & Casualty > Value of a life is critical

Value of a life is critical

What sounds like an esoteric battle between obscure government agencies has some significant implications for the Property and Casualty Insurance industry. Outlined in a recent New York Times story is a battle of the bureaucrats over the value of a single human life.  The number, used to calculate the effectiveness of certain risk management and loss prevention steps, has jumped under the Obama administration.

Depending upon the agency in question, the value of a life has moved to over $9 million.  This figure is important to the Property & Casualty (P&C) community since wrongful death claims under Products Liability and General Liability claims scenarios may rely on this benchmark in making settlements with litigants.  A higher federal benchmark equals bigger payouts from P&C insurers.

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