The Institutes

Swiss Re Charts $17B In Litigation Funding In 2021

 Wednesday, January 19, 2022

 Risk & Insurance

Third-party litigation funding, or TPLF, has become a booming business onto its own.

An estimated $17 billion was invested into litigation funding globally in the year 2020, with the U.S. taking more than half of it.

In return, these hedge funds, family offices and other litigation funding companies receive a cut of the potential jury awards.

This behavior, according to recent findings from Swiss Re, is likely driving up social inflation, as well as insurance premiums, liability availability and more.

‘We find TPLF contributes to social inflation by incentivizing litigants to initiate and prolong lawsuits. Higher claims costs drive up insurance premiums, can reduce availability of liability cover, and lead to higher uninsured legal liability risks for U.S. businesses,’ the report reads.

Litigation Funding and Social Inflation: What’s the Connection?

 Wednesday, July 21, 2021

 Insurance Information Institute

Litigation Funding and Social Inflation

 Friday, July 16, 2021

 Insurance Information Institute

Litigation Funding And Social Inflation

 Monday, January 4, 2021

 Canadian Underwriter

Opinion: Why The Industry Is Wrong About Litigation Funding

 Monday, November 16, 2020

 Canadian Underwriter

Litigation Loans: War Chest For Plaintiffs, Invite To Fraud

 Friday, August 18, 2017

 Coalition Against Insurance Fraud