Allianz Litigation Funding has announced that it has ceased considering new applications for litigation funding. For many this has not come as much of a surprise as Allianz were becoming less visible in the litigation finance sector by comparison to previous years when they were heralded as being a leading player.
It has been speculated that the frequency of conflicts was a key reason for the decision to close the litigation funding account; Allianz has a large insurance book which might include prime defendant targets for claimants and their litigation funders.
James Blick, Director at TheJudge, advises: “the withdrawal of Allianz isn’t unexpected. Good litigation funding cases are often cases against large financial institutions which can inherently cause conflicts. Over the past decade, TheJudge has seen many players come and go in the litigation funding and ATE insurance marketplace.
Allianz’s departure won’t necessarily leave a void given the wave of new capacity in the legal finance sector however it does serve as a useful reminder for law firms to keep a watchful eye on the whole market and not become too complacent or reliant on one capacity provider”