Lex Machina publishes insurance litigation report for 2024

Cases dropped in 2023, but cases also increased

Lex Machina publishes insurance litigation report for 2024

Legal Insights

By Kenneth Araullo

Lex Machina, a LexisNexis company, has released its 2024 Insurance Litigation Report, analyzing trends in insurance litigation in federal district and appellate courts.

The report covers the period from 2021 to 2023, examining trends in case filings, venues, judges, law firms, parties, timing metrics, case resolutions, findings, and damages.

It focuses on various subsets of data, including general insurance cases, business liability insurance cases, business interruption insurance cases, hurricane-related insurance cases, homeowners policy insurance cases, and federal appellate cases.

Ron Porter, Lex Machina's insurance legal data expert and editor of the report, emphasized the importance of understanding litigation trends across different subsets of cases.

“By doing so, we gain important data-driven insights into the shifts and patterns in the practice area of insurance litigation. Practitioners can use these insights to sharpen their litigation strategy and advise their clients,” Porter said.

In 2023, 17,654 insurance cases were filed in federal district courts. From 2021 to 2023, the Eastern District of Louisiana saw the highest number of insurance case filings. Insurance companies were the most active plaintiffs and defendants during this period.

Of the insurance cases appealed to a federal appellate court and terminated with a decision on the merits from 2021 to 2023, 21% were ultimately reversed. Additionally, $1.56 billion in total damages were awarded as Approved Class Action Settlements from 2021 to 2023.

State Farm Fire & Casualty Company had the most active defendants by cases from the period of 2021 to 2023, with the firm recording 5,833 cases. State Farm Mutual Automobile Insurance Company followed suit with 2,138 cases, while Allstate Vehicle & Property Insurance Company took third with 1,368 cases.

In terms of legal victories within the district courts, 79% of cases recorded came out with likely settlements, according to Lex Machina. More than one in 10 (12%) reached a procedural resolution, and 8% saw the claim defendant win. Only 1% of cases saw the claimant win a case resolution for cases terminated.

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