JPI lets a plaintiff (or their funders) lock in part of a trial win while appeals run. Policies are syndicated across towers of dozens of insurers; typical premiums run 5–15% of the limit with meaningful retentions.
The market's defining stress test: a $1.6 billion judgment against IBM carried an estimated $500–750 million of JPI — and the Fifth Circuit reversed it in 2024. Carriers retrenched, and by 2026 the product had reshaped toward portfolio-level coverage. About one-fifth of new litigation-finance commitments are now insurance-wrapped.
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