Law firm DAC Beachcroft warns of surging product liability claims that come with the rise of popular Glucagon-like peptide-1 receptor agonists (or GLP-1s), drugs for obesity management.
“Plaintiffs allege manufacturers failed to adequately warn of severe side effects, including gastroparesis (delayed stomach emptying), vision loss (notably NAION) and suicidal thoughts,” the law firm explains in its recent predictions for 2026.
DAC Beachcroft notes that the litigation focus has recently changed towards vision-related claims. A shift driven by recent regulatory developments, including the European Medicines Agency’s mandate for updated warning labels, and new findings cited in the Journal of the American Medical.
“These regulatory actions may be used by plaintiffs as evidence of known risks. Gastroparesis claims now require confirmation by gastric emptying study, potentially excluding some cases,” experts stated.
Overall, DAC Beachcroft expects product liability exposures to increase, with continued volatility as regulatory scrutiny intensifies.
Recent market reports have stated that the insurance market is facing immediate financial pressure due to the increased use of these drugs.
Gallagher Re reports that the surge in GLP-1 usage caused the non-specialty prescription trend to jump from roughly 3.2% to an estimated 10-12% in 2024.
These medications now account for at least 9% of overall prescription spending in many employer-sponsored plans and could add an additional 1% to 2% to the overall medical cost trend.
This spending increase poses specific risks for reinsurance structures, according to the reinsurer. Aggregate stop-loss is considered an area of high risk. Broader adoption of the drugs increases per-member-per month costs, making aggregate coverage vulnerable to fluctuations.
Additionally, the impact to specific stop-loss is negligible, as the annual cost per member ($10,000 – $12,000) typically does not breach high-excess deductibles. The issue of patient adherence also complicates the financial outlook.
Despite these challenges, financial analysts see a massive market trajectory. Jefferies’ forecasts that GLP-1s could be a global market exceeding $100 billion.
Moreover, Swiss Re suggests that these medications could substantially reduce mortality rates in the US and UK over the next two decades.
Jefferies also highlighted that a “slimmer society” leading to a healthier population is expected to drive improvements in morbidity, which could lower claims costs in products such as disability and long-term care.
Increased longevity could increase claims costs for products like pension risk transfers and income annuities. Regarding health insurance, the impact is mixed. While a healthier population may reduce hospital visits, premium rates might drop to compensate for the lower risk.
About the Author
