Insurance sector has had busiest litigation period since before 2014
Litigation data and analytics platform Solomonic has released its latest report on litigation trends in the insurance sector, focusing on the five-year period from 2020-2024 when approximately 1,710 cases were filed involving more than 1,200 insurance parties.
At London International Disputes Week (LIDW25), Solomonic joined Herbert Smith Freehills Kramer and 7 King’s Bench Walk to host Insurance disputes in the face of global change and challenges to unpack the data and trends in commercial litigation, including insights from the report.
Disputes involving the insurance sector are common in the English High Court: Solomonic data shows that they are one of the most frequent visitors to the English civil courts. Not unexpected, as insurers and their brokers often foot the bill in incidents of misfortune, error, or misdeed.
The Covid-19 pandemic, and the disputes that ensued, kicked off a period of high profile and very high value litigation against insurers. While making headlines, they have also brought home the extent to which major crises — whether war or pandemic — have market-influencing impacts on the sector. In addition, they help to create the impression that insurance disputes are generally on the rise.
Key highlights from the report include:
Disputes show an upward trend since 2014 - volumes have risen steadily year on year, with a marked increase in active cases and significant spike in disputes numbers in 2023.
Litigation burden has shifted in recent years - insurers are more likely to be defending cases than claiming, 26% up when comparing 2019 and 2025.
Two major claim seams impact on the sector - the pandemic triggered waves of litigation from debt recovery and business interruption cases through 2022 and 2023, while over a quarter of war-related aviation leasing claims valued over £100 million further intensify the pressure.
Time to judgment increasing - impact of lockdowns on court is evident, taking 70% longer for claims that go to trial than in 2020.
Edward Bird, CEO of Solomonic, said: “This analysis reveals some interesting insights into the sector and the evolving patterns of insurance disputes supported by over a decade of our High Court data analysis. We were delighted to join Herbert Smith Freehills Kramer and 7KBW at LIDW25 to unpack what is shaping today’s litigation landscape.”
The report delves into the volume of disputes, identifies the most active insurers, compares the value of claims across sectors and explores patterns in court selection and party behaviour. It also examines the key dispute types driving litigation, settlement versus trial tendencies, average time to resolution and the significant impact of the pandemic and the Russo-Ukrainian war on both the volume and scale of claims.