5-Year Cost of Litigation Funding to Commercial Insurers Could Top $25B

Gian Kull of Omni Bridgeway and Nick Rowles-Davies of Lexolent dissect a model developed by EY to measure the impact of litigation funders which purportedly showed that the five-year cost of litigation funding to commercial insurers could top $25 billion, pointing out flaws in the assumptions and methodology used by EY, including an assumption that insurers will pay about 90% of funders’ returns.

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