We’ve talked extensively about the many forces behind rising property and casualty insurance rates. But there’s another issue that deserves attention: third-party litigation funding (TPLF)—where outside investors financially back lawsuits in exchange for a share of the proceeds.
The concern? When lawsuits become investment opportunities, litigation can become more expensive and claims can become more costly to resolve—costs that can ultimately make their way into the insurance premiums consumers and businesses pay.
This is an issue that the independent insurance industry has been working with Connecticut legislators to address, and there has been some momentum toward greater transparency and accountability.
If you’re concerned about the continued rise in insurance costs, this is an issue worth understanding—and worth making your voice heard on.
Read the full article here, When Investors Bet on Lawsuits by Lisa Lounsbury, Big “I” CT President, to learn how third-party litigation funding works, why it matters to insurance consumers, and why Connecticut consumers should contact their legislators to help encourage greater transparency and accountability.
For any additional questions, please contact our team.
