The Insurance Information Institute (Triple-I) has released a new report that looks closely at the rise of attorney advertising and the growing influence of third-party litigation funding (TPLF) on legal trends and insurance. This report, published on May 30, 2025, highlights how these factors are leading to more lawsuits and longer settlement times.
According to the report, legal service providers spent over $2.5 billion on nearly 27 million ads in 2024. This spending has significantly increased since 2017, particularly in television, radio, and outdoor advertising formats. In fact, television ads peaked in 2023 with 16.4 million spots, marking a 44% increase from 2017. Radio ads also saw a huge surge, with over 6.8 million ads in 2024, a jump of 261%. Outdoor advertising, including billboards, rose by more than 260% during the same period.
The report from Triple-I draws on data from the American Tort Reform Association (ATRA), which shows that major cities like Los Angeles, New York, and Miami are hotspots for legal service ads. This targeted advertising strategy aims to reach areas with dense populations and potential clients.
Triple-I noted that the growth in advertising spending, which has risen 39% since 2020, is partly due to increasing digital costs. However, the role of third-party litigation funders is also significant. These funders often finance lawsuits in exchange for a portion of any settlement, which has allowed law firms to ramp up their advertising efforts.
Sean Kevelighan, CEO of Triple-I, commented that attorney advertising has become a big business, fueling multi-district litigation and attracting individuals for various cases. He pointed out that these ads often create a sense of urgency and can lead people to pursue legal action without fully considering their options.
The report also warns of the risks associated with aggressive attorney advertising. It can lead to unrealistic expectations about guaranteed settlements and may affect juror perceptions by presenting biased information before cases are heard.
Despite a contraction in the TPLF market by nearly 30% from 2022, the average size of litigation finance deals has increased. In 2024, the average deal size grew to $8 million, reflecting a trend toward larger and more complex cases. The TPLF sector now manages around $16 billion in assets, with a large portion allocated for legal budgets, which include marketing costs.
Research referenced in the report shows a direct link between the volume of advertisements and the number of plaintiffs involved in multi-district litigation. This suggests that the increase in litigation is driven not just by competition among law firms, but by an actual rise in claimants.
Kevelighan emphasized that TPLF is fueling the growth of the legal industry, which could challenge how insurers assess risk and set premiums. Stakeholders are calling for more transparency and regulation to balance access to legal action with the integrity of the civil justice system. Without oversight, the combination of increased advertising and external funding could lead to higher insurance costs and lower consumer trust.
In summary, the report sheds light on the evolving landscape of legal advertising and its implications for the insurance industry and consumers. It raises important questions about the future of legal practices and the potential need for reform in this area.