Class actions, forum shopping and third-party litigation funding are all on the increase in Europe and the US, according to Lloyd’s.

The report, Litigation and Business: Transatlantic Trends, reveals the basis for these three trends.

“They address a common and widespread set of issues: a desire to spread legal risks, a wish to maximise advantage during litigation and the fact that increasing global activity widens a business’ legal risk and pool of capital from which it can fund these,” the report claimed.

Lloyd’s expects the opportunities for class actions to grow in the European Union, so the likely risk to business of mass litigation may increase.

Forum shopping is particularly prevalent in the US, where the risk of foreign-based companies being sued is high – even when details of the claim have little apparent connection to that jurisdiction.

Despite regulatory attempts at harmonisation across individual nations, Lloyd’s says Europe is also at risk.

Third-party funding litigation may increase in future as the investment appeals to investors discouraged by financial market gloom.

Lloyd’s says current economic conditions bring a greater likelihood of claims, increasing the costs of dealing with disputes and of meeting damages.