It is widely acknowledged that there is an ever-increasing number of litigation funders and ATE insurers entering the UK market. Economics 101 tells us that this will have a downwards effect on price. According to a review of the last 6 months by the UK’s largest litigation funding broker, TheJudge, the effects of increased competition in the third party funding market for commercial litigation and arbitration are highly visible.

TheJudge reports a 28% increase in the number of applications receiving three or more funding offers compared with the same months in 2012. The ATE insurance market appears to be even more competitive with an increase of 34% in the number of cases receiving at least 3 insurance offers.

James Delaney, Director at TheJudge who wrote the article published on the company website states that “in recent examples for commercial clients requiring insurance for their own legal fees as well as adverse cost insurance, we have seen occasions where as many as six insurers have tendered competitively in order to write the case.”

The market for litigation funding and ATE insurance looks set to become even more competitive and is being helped along by deal flow from litigation and arbitration boutiques. This is likely to result in more competitive pricing for claimants and, therefore, an increased number of applications for both funding and insurance.

Categories: Uncategorized

Leave a Reply