Burford has released its Q4 2021 report, which contains exciting insights into the evolution of the legal finance marketplace. Two new products adorn the LF space: Affirmative recoveries and litigation insurance policies. These new sectors are dominated by the same large insurance firms that have offered complimentary insurance and liability products over the last decade.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Burford has released its Q4 2021 report, which contains exciting insights into the evolution of the legal finance marketplace. Two new products adorn the LF space: Affirmative recoveries and litigation insurance policies. These new sectors are dominated by the same large insurance firms that have offered complimentary insurance and liability products over the last decade.
Burford’s research explains that the new LF-focused features cover the top tier of the industry, representing 10-20% of overall value. Between judgment preservation and affirmative recovery, policy holders are secure with features that represent similar characteristics of traditional insurance. The holder pays a regular premium (monthly, quarterly) to secure coverage. What is keenly interesting is that many policyholders have backdoor participation clauses if a claim were to be executed and ultimately prove successful.
The bundling of the LF product portfolio extends the reach of the emerging marketplace, allowing firms to “goose” (to increase the activity, speed, power, intensity, or amount of) cash value of a claim; a thrilling concept in reality. Download the Buford Quarterly for in-depth analysis of how the LF market is ushering in insurance and asset recovery as avantgarde industry supplements.
