Lex Machina Reports Trends in Insurance Litigation for 2024

Lex Machina, a LexisNexis company, has released its 2024 Insurance Litigation Report, providing an in-depth analysis of trends in federal district and appellate courts from 2021 to 2023. The report examines various subsets of insurance litigation, including business liability, business interruption, hurricane-related cases, and homeowners policy cases.

Ron Porter, Lex Machina’s insurance legal data expert, highlighted the report’s value in understanding shifts in litigation trends, enabling practitioners to refine their strategies and better advise clients. In 2023, 17,654 insurance cases were filed in federal district courts, with the Eastern District of Louisiana seeing the highest number of filings.

Key findings include that insurance companies were the most active plaintiffs and defendants, and 21% of federal appellate insurance cases decided on the merits were reversed. The report also notes that $1.56 billion in damages were awarded through Approved Class Action Settlements from 2021 to 2023.

State Farm Fire & Casualty Company was the most active defendant with 5,833 cases, followed by State Farm Mutual Automobile Insurance Company and Allstate Vehicle & Property Insurance Company. Additionally, 79% of cases were likely settled, 12% reached procedural resolutions, 8% saw the defendant win, and only 1% resulted in a claimant win.