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💰 '''Forensic economist''' is a specialized expert who quantifies economic losses — such as lost earnings, diminished earning capacity, lost profits, and the present value of future financial streams — in the context of insurance [[Definition:Claims | claims]], litigation, and dispute resolution. When a [[Definition:Bodily injury | bodily injury]] or [[Definition:Wrongful death | wrongful death]] claim requires a rigorous calculation of the claimant's lifetime economic loss, or when a [[Definition:Business interruption insurance | business interruption]] dispute demands an independent assessment of revenue shortfalls, insurers, defense counsel, and plaintiff attorneys routinely retain forensic economists to produce analyses that can withstand cross-examination and regulatory scrutiny.

🔍 A forensic economist's work typically begins with gathering employment records, tax returns, medical prognoses, industry wage data, and business financial statements. Using established economic methodologies — discounting future cash flows, adjusting for inflation, worklife expectancy tables, and labor-market statistics — the expert constructs a damages model that translates real-world harm into a monetary figure. In [[Definition:Liability insurance | liability]] claims across the United States, forensic economist testimony is a near-standard feature of serious injury and death cases, especially as [[Definition:Social inflation | social inflation]] drives jury verdicts higher. In other jurisdictions, such as the UK and Australia, similar economic evidence is presented through expert reports governed by court procedural rules, and the [[Definition:Ogden tables | Ogden tables]] in England and Wales serve a comparable function for personal injury multipliers.

📊 For insurers and [[Definition:Reinsurer | reinsurers]], forensic economic analysis directly influences [[Definition:Reserving | reserve]] setting and settlement strategy. An inflated or poorly supported damages figure can push a claim into excess layers or trigger [[Definition:Reinsurance | reinsurance]] recoveries, while a well-reasoned economic report can help adjusters negotiate settlements within a defensible range. [[Definition:Claims | Claims]] departments in sophisticated carriers maintain panels of vetted forensic economists and deploy them early in high-value cases to shape litigation outcomes. As data analytics and [[Definition:Artificial intelligence (AI) | AI]]-driven tools become more prevalent, some [[Definition:Insurtech | insurtech]] platforms are beginning to automate portions of the economic-loss calculation, though complex cases still demand the judgment and courtroom credibility that a qualified human expert provides.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Forensic engineer]]
* [[Definition:Bodily injury]]
* [[Definition:Business interruption insurance]]
* [[Definition:Loss reserving]]
* [[Definition:Social inflation]]
* [[Definition:Expert witness]]
{{Div col end}}

Definition:Forensic economist - Revision history

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