APCIA backs act to tackle third party litigation funding

The American Property Casualty Insurance Association (APCIA) has called for support for an act that is designed to create more transparency around third party litigation funding, which is becoming a growing problem for insurers and is blamed in part for soaring loss costs and social inflation. 

“The misuse of the legal system fuelled by third party litigation funding has formed a litigious culture.”

House Judiciary Subcommittee chairman Darrell Issa has submitted legislation, called the Litigation Transparency Act of 2024, which calls for disclosure of third party litigation funding in civil litigation. 

Nat Wienecke, APCIA’s senior vice president of federal government relations, said: “The misuse of the legal system fuelled by third party litigation funding has formed a litigious culture, ultimately burdening every consumer and business through increased costs, including the cost of insurance throughout the country. 

“APCIA appreciates chairman Issa’s leadership for introducing legislation that would require disclosure of third party litigation funding in civil litigation. APCIA encourages members of Congress to support this legislation.”

For more news from the American Property Casualty Insurance Association (APCIA) click here.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.