Public and product liability sector class actions in Australia raise complex issues for insurers, with manufacturing and utilities at high risk.

Currently, new trends are emerging around climate and environment-related challenges, and the third-party funding market continues to undergo changes in dynamics, especially since Victoria allowed for the use of contingency fees in 2020.

‘Forever chemicals, of which Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) are currently considered the most significant, are emerging as a key environmental challenge that may present new exposure for insurers. A class of man-made toxins, PFAS is found in everything from cookware to cosmetics and drinking water.

In the US, for example, PFAS litigation has been increasing since DuPont’s 2011 settlement of 3,500 cases for approximately US$670 million. In Australia, the Federal Government last year reached a A$132.7 million class action settlement with landowners over PFAS contamination from firefighting foam.

Funders look for new focus areas

Gareth Horne, Partner at law firm Clyde & Co, says there has been a shift away from more traditional areas like securities class actions in the past five years due to regulatory change and the emerging landscape following Australia’s Banking Royal Commission. 

Premium

You need to login to access this

Login

What are CIP Points? About ANZIIF Membership