Commercial Litigation Funding and Social Inflation: A Non-Sequitur

Dai Wai Chin Feman of Parabellum Capital counters views often expressed by property/casualty insurance organizations and explains why commercial litigation funding is not the root of social inflation. He offers data to show that the industry is too small to materially contribute to social inflation. In his view, regulation reforms being pushed by insurers and reinsurers would increase insurance costs and prolong case durations. He urges the insurance industry to embrace commercial funding as an opportunity for the development and expansion of new and existing business lines. Read more.