APCIA Supports Federal Legislation Mandating Disclosure of Litigation Funding
The American Property Casualty Insurance Association (APCIA) has voiced its support for federal legislation aimed at enhancing the transparency of third-party financers involved in litigation. This initiative is particularly timely, as the Protecting Third Party Litigation Funding From Abuse Act, introduced by Rep. Darrell Issa (R-Calif.), is set for discussion in a full markup session by the House Judiciary Committee on January 13.
A committee markup serves to assess whether a bill or draft should be recommended to the full House of Representatives. Sam Whitfield, APCIA’s senior vice president of federal government relations and political engagement, described the legislation as a “positive step forward.” The proposed bill mandates that all contracts related to funding arrangements be submitted to the court. According to the text of the bill, parties involved in litigation or their legal counsel must disclose in writing all other parties to a civil action who will receive any payment contingent on the outcome of the case.
“We believe this will facilitate critical litigation transparency within the legal system,” APCIA stated. “We will continue collaborating with Representative Issa, the bill’s sponsors, and other stakeholders as the legislation evolves to ensure it delivers necessary disclosure requirements for parties engaging in for-profit investing through our courts.”
The insurance industry has consistently highlighted litigation funding—where investments are made in lawsuits in exchange for a percentage of any settlement or judgment—as a significant factor driving the rapid increase in litigation costs. During APCIA’s annual meeting last year, Gareth Kennedy, principal of insurance and actuarial advisory services for EY, reported that the average cost for a commercial claim has risen by 10% to 11% annually since 2017. His research indicated that over the next five years, third-party litigation funding (TPLF) could cost the insurance industry up to $50 billion in both direct and indirect expenses.
Addressing legal system abuse, including the use of TPLF, is a priority on APCIA’s agenda for 2026, as stated late last year. David A. Sampson, APCIA’s president and CEO, emphasized that the industry trade association “will aggressively fight for disclosure in secretive third-party litigation funding.”
APCIA has previously expressed its support for Issa’s Litigation Transparency Act of 2025 (HR 1109), which was introduced in February 2025.
Related: Court Orders Start to Expose ‘Startling’ Data on Litigation Funding Sources
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The American Property Casualty Insurance Association (APCIA) has voiced its support for federal legislation aimed at enhancing the transparency of third-party financers involved in litigation. This initiative is particularly timely, as the Protecting Third Party Litigation Funding From Abuse Act, introduced by Rep. Darrell Issa (R-Calif.), is set for discussion in a full markup session by the House Judiciary Committee on January 13.
A committee markup serves to assess whether a bill or draft should be recommended to the full House of Representatives. Sam Whitfield, APCIA’s senior vice president of federal government relations and political engagement, described the legislation as a “positive step forward.” The proposed bill mandates that all contracts related to funding arrangements be submitted to the court. According to the text of the bill, parties involved in litigation or their legal counsel must disclose in writing all other parties to a civil action who will receive any payment contingent on the outcome of the case.
“We believe this will facilitate critical litigation transparency within the legal system,” APCIA stated. “We will continue collaborating with Representative Issa, the bill’s sponsors, and other stakeholders as the legislation evolves to ensure it delivers necessary disclosure requirements for parties engaging in for-profit investing through our courts.”
The insurance industry has consistently highlighted litigation funding—where investments are made in lawsuits in exchange for a percentage of any settlement or judgment—as a significant factor driving the rapid increase in litigation costs. During APCIA’s annual meeting last year, Gareth Kennedy, principal of insurance and actuarial advisory services for EY, reported that the average cost for a commercial claim has risen by 10% to 11% annually since 2017. His research indicated that over the next five years, third-party litigation funding (TPLF) could cost the insurance industry up to $50 billion in both direct and indirect expenses.
Addressing legal system abuse, including the use of TPLF, is a priority on APCIA’s agenda for 2026, as stated late last year. David A. Sampson, APCIA’s president and CEO, emphasized that the industry trade association “will aggressively fight for disclosure in secretive third-party litigation funding.”
APCIA has previously expressed its support for Issa’s Litigation Transparency Act of 2025 (HR 1109), which was introduced in February 2025.
Related: Court Orders Start to Expose ‘Startling’ Data on Litigation Funding Sources
Topics
Lawsuits
Mergers & Acquisitions
Interested in Lawsuits?
Get automatic alerts for this topic.
