The report reveals an overwhelming majority (93%) of insurance companies have been issued with at least one new lawsuit over the past year, while a third of respondents faced more than 20 new actions.

Half the insurers in the Fulbright Jaworski Litigation Trends Survey have class actions pending, with 16% facing more than six.

Insurers were the subject of more disputes involving $US20 million ($21.7 million) or more than their counterparts in other industries. Litigation costs are substantial, with almost a third of insurers spending over $US5 million ($5.4 million) and more than half spending over $US1 million ($1.1 million).

But insurers themselves are not shy of taking legal action, with almost four-fifths filing at least one suit in 2006/07.

And there is little sign of respite, with more than a quarter of insurance firms predicting they would face increased litigation next year.