RIMS legislative priorities include litigation funding transparency

The Risk & Insurance Management Society Inc. Thursday called for more transparency on third-party litigation funding as it outlined its legislative priorities for 2025.

“Nuclear verdicts continue to have a detrimental impact on businesses, and for some organizations, legal risk has jumped to the top of the risk register,” RIMS said in a statement.

The organization called for greater transparency on third-party litigation funding, which allows outside parties to provide financial support to a plaintiff in a lawsuit in exchange for a share of the settlement or judgment.

It also called for Congressional leaders to act against foreign third-party entities financially backing civil litigation.

In other legislative priorities, RIMS said it would push for a federal framework for protecting data privacy and cybersecurity and continue to call for the reauthorization of a long-term National Flood Insurance Program.

Most states have enacted data privacy and data breach notification laws, creating “a patchwork of state laws that cause confusion and lessen efficiency, especially for businesses operating in multiple jurisdictions,” RIMS said.

The organization will continue to advocate for “a national, unified standard for data security and breach notification,” the statement said.