A specialty insurer that has written more than US$2 billion in litigation capital across international markets has entered Australia, adding a second locally licensed carrier to a segment where brokers have had limited placement options. Ignite Specialty Risk, headquartered in London, announced on August 3 the appointment of Lucinda Stormont-Sainsbury as head of Australian operations, based in Sydney. The firm has operated in the UK, Europe, and the US since 2022 and has supported over US$2 billion in litigation capital across its international portfolio since its launch. Chambers and Partners ranked Ignite Specialty Risk Band 1 in both the UK and US for Litigation Insurance Underwriters in its Litigation Support Guide 2026, with the firm having written US$360 million worth of policies in the US in 2024, covering litigation assets with an estimated value of more than US$5 billion.
The competitive significance of the entry is specific. Litica Australia, a Lloyd's coverholder with a Sydney office, describes itself as "Australia's only local ATE insurance provider" and has been ranked Band 1 by Chambers and Partners in litigation insurance underwriting for 2024 and 2025. Founded in London in 2019, Litica has since been acquired by PIB Group, the UK insurance distribution consolidator, and now operates from London, Cologne and Sydney, with total risk underwritten across its business surpassing AU$3.6 billion and capacity to write up to approximately AU$30 million of cover per case through its Lloyd's syndicate backing. Ignite's entry means Australian litigation funders, law firms and insurers now have a genuine second locally licensed option to shop against that incumbent, rather than a single provider setting the market's terms by default.
That prior concentration has had direct consequences for brokers placing legal risk cover. Historical court decisions scrutinised the adequacy of policies from overseas insurers without an Australian presence, highlighting enforcement concerns. The establishment of locally licensed entities by major providers addresses those concerns and signals market maturation, according to the Chambers and Partners Litigation Funding 2026 guide published in March 2026.
The judicial position on locally enforceable after-the-event (ATE) policies has also recently strengthened. In i-Prosperity Pty Ltd (in liquidation) v Crown Melbourne Ltd [2025] NSWSC 1525, a New South Wales court found, described as an Australian first, that an ATE policy including an anti-avoidance endorsement entitled the defendant to enforce it directly against the insurer, making the policy adequate security for costs.
Ignite's offering sits within the broader litigation risk insurance market, which includes products designed to transfer different forms of legal and financial uncertainty. ATE insurance is typically purchased after a dispute has commenced and protects against the risk of paying an opponent's legal costs if a claim is unsuccessful. Litigation risk insurance can cover the financial consequences of adverse outcomes in active or anticipated proceedings, while contingent risk insurance addresses identified exposures, including legal, tax, and regulatory risks, where the underlying facts are established, the potential financial impact can be assessed, and the remaining uncertainty can be evaluated through underwriting. These products allow businesses, litigation funders, law firms, and other stakeholders to manage financial exposures associated with uncertain legal outcomes by transferring defined risks to insurers.
The ATE market remains relatively underutilised in Australia, although it is anticipated that competition will increase as uptake broadens across commercial disputes in addition to class action proceedings, according to the Chambers guide. The litigation activity underpinning demand is substantial, even as the funding market has faced revenue pressure in recent years. The Australian litigation funding market recorded estimated revenue of $123.6 million in the 2025-26 financial year, down from $258.3 million in 2020-21, a contraction of 13.7% per annum between 2020 and 2025, largely attributed to the COVID-19 pandemic, with class actions accounting for close to 50% of industry revenue in 2026. The Chambers guide projects growth of 4.4% per annum between 2025 and 2031. Research by Professor Vince Morabito recorded 299 class actions filed across Australian jurisdictions between July 1, 2020, and June 30, 2025, with the median gross settlement sum in funded proceedings reaching $29.25 million, compared to $19 million in unfunded cases.
The regulatory environment for litigation funding, and the ATE products that support it, has recently stabilised. The Australian Securities and Investments Commission (ASIC) extended two key instruments, the ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 and the ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38, until January 31, 2029, providing certainty for funders, lawyers, and the insurers operating alongside them. The current regulatory environment reflects a pragmatic, evidence-based approach that recognises the courts' active role in managing litigation funding within the justice system.
Stormont-Sainsbury brings 15 years of experience across underwriting, claims, private practice, and in-house insurance law. She joins from HDI Global SE, where she served as senior legal counsel across branches in Australia, New Zealand, Singapore, Hong Kong, Malaysia, and Dubai. She was named Insurance Lawyer of the Year 2026 at the Australian Corporate Counsel Awards. Her legal background, rather than a conventional underwriting background, signals how Ignite intends to distribute. Its target clients of litigation funders, law firms, and lenders are reached as much through legal networks as through traditional broker channels.
That distribution model doesn't remove brokers from the picture, but it does change where they sit in it. A corporate client facing significant litigation exposure, or an insolvency practitioner managing a distressed estate, will often engage a broker and litigation counsel in parallel rather than one instead of the other; a broker aware that Ignite is now a genuine second local market can raise it directly in those conversations, or work alongside a client's legal team to get a competing quote, even where the ultimate underwriting conversation runs primarily through Ignite's legal network rather than a conventional submission.
Stormont-Sainsbury noted the conditions specific to Australia. "Australia is a sophisticated insurance market with an increasingly complex risk landscape. I look forward to working with our partners as we prepare to introduce innovative specialist solutions that help clients manage their specialty insurance needs with confidence," Stormont-Sainsbury said. David Green, chief underwriting officer at Ignite, described the commitment as long-term. "We are making a long-term commitment to the market by investing in local leadership and building strong relationships with brokers, legal advisers, and strategic partners. We see strong demand for our proven expertise and product suite," Green said.
For brokers, the practical implication is a second locally established carrier with A- rated capacity entering a product line that has historically had limited local competition.
