Lex Machina, a LexisNexis company, has released its 2024 Insurance Case Report, which analyzes trends in insurance cases in federal district and appellate courts.

The report covers the period from 2021 to 2023, examining trends in filing cases, venues, judges, law firms, parties, timing metrics, case decisions, outcomes and damages.

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

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

“By doing so, we gain important data-driven insights into shifts and patterns in the insurance litigation practice area. Practitioners can use these insights to refine 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.

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Of the insurance cases appealed to a federal appeals court that ended in a decision on the merits from 2021 to 2023, 21% were ultimately overturned. Additionally, $1.56 billion in total damages have been awarded in class action settlements approved from 2021 to 2023.

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

Regarding legal victories within district courts, 79% of registered cases resulted in potential settlements, according to Lex Machina. More than one in 10 (12%) reached a procedural decision, and 8% saw the defendant win the case. Only 1% of cases see the plaintiff win a resolution of terminated cases.

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