What changed

The Louisiana Department of Insurance (LDI), in collaboration with the National Insurance Crime Bureau (NICB) and 4WARN, has launched a partnership to address deceptive marketing practices by third-party litigation funding (TPLF) entities. These entities allegedly use digital tactics, including paid online search ads, to mislead consumers into unnecessary litigation, contributing to increased insurance premiums. The partnership aims to expose these tactics, which have reportedly driven millions of clicks and significant advertising spend, and to protect policyholders from being steered into costly legal disputes before consulting their insurers.

Regulated entities and consumers should be aware of these deceptive practices. The LDI advises consumers to contact their insurance company first for claim resolution and provides a consumer protection hotline for assistance. While this is a notice and not a rule, it signals increased scrutiny on TPLF marketing and its impact on the insurance market. The initiative highlights the growing concern over TPLF's role in driving up litigation costs and potentially increasing insurance premiums nationwide.

What to do next

Review internal processes for identifying and reporting potentially deceptive TPLF marketing tactics.
Educate consumer-facing staff on TPLF risks and advise policyholders to contact their insurer first for claims.
Monitor LDI communications for any further guidance or enforcement actions related to TPLF.

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March 3, 2026 ****

LDI Partners with NICB and 4WARN to Combat Third-Party Litigation Funding Marketing Tactics

The Louisiana Department of Insurance (LDI) has partnered with the National Insurance Crime Bureau (NICB) and digital intelligence company 4WARN® to warn consumers about digital tactics used by opportunists tied to third-party litigation funding (TPLF).

This first-of-its-kind partnership creates a protection system to shield consumers from TPLF entities that use digital tactics to drive insurance claims into unnecessary litigation. Some third-party entities mislead consumers into believing they are communicating with their insurance companies to steer policyholders into long and costly legal disputes before they talk to their insurance company.

TPLF occurs when an outside entity with no direct connection to a lawsuit pays for the legal costs of a case in exchange for a share of the settlement or judgment if the case wins.

According to a recent report by NICB and 4WARN, these misleading websites drew 27.8 million clicks in June 2025. TPLF opportunists spent an estimated $380 million on paid online search ads alone from June 2024 to June 2025.

Additional research shows that verdicts exceeding $10 million have nearly tripled nationwide since 2020. TPLF drives up insurance premiums by fueling larger settlements that increase insurer losses and creates the potential for more lawsuits.

“The LDI is dedicated to protecting Louisianans from opportunists who manipulate the claims process to fuel excessive litigation, which is a primary driver of our high insurance costs,” said Insurance Commissioner Tim Temple. “I’m excited to partner with NICB and 4WARN to expose these misleading practices that prey on policyholders when they are most vulnerable.”

“From on-the-ground investigations to sophisticated analytics, NICB has witnessed firsthand how litigation funding can add fuel to the fire of insurance fraud,” said Kyle McCollum, NICB Vice President of Strategy, Policy, and Government Affairs. “NICB is proud to partner with Commissioner Temple in raising awareness of TPLF-facilitated fraud and combating these tactics by advocating for greater transparency and accountability.”

“TPLF doesn’t operate in isolation,” said Todd Kozikowski, CEO of 4WARN. “When it intersects with coordinated digital tactics, it can influence who enters the claims process, how disputes unfold and how long they last. Greater visibility into this activity helps insurers and policymakers respond earlier and limit downstream harm.”

The LDI recommends consumers contact their insurance company first to resolve claims. Call the LDI Office of Consumer Services at 800-259-5300 for help if you believe your insurer is not treating you fairly.

Here are tips to help protect your online searches:

- Obtain information from trusted sources. In particular, the LDI’s website and new mobile app, available via [Apple App Store](https://protect.checkpoint.com/v2/r01/___https:/apps.apple.com/us/app/ldi-connect/id6505007499___.YzJ1OmxvdWlzaWFuYWRlcGFydG1lbnRvZmluc3VyYW5jZTpjOm86YWQ4MmMzYjk1NjQwNDZjYTI0OGUyNjdlMDhlNmY1OTY6NzoyMDk0OmFhYWIzYmVmYjAzMzc1ZGJjYzIzZDM0NmQxMmQ5MDZmMDM2YmM3NWJkM2EyZGMyMDMxNTU5Mzk2YWFhNTE1NGQ6cDpUOkY) and [Google Play Store](https://protect.checkpoint.com/v2/r01/___https:/play.google.com/store/apps/details?id=gov.la.ldi.ldiconnect.android___.YzJ1OmxvdWlzaWFuYWRlcGFydG1lbnRvZmluc3VyYW5jZTpjOm86YWQ4MmMzYjk1NjQwNDZjYTI0OGUyNjdlMDhlNmY1OTY6NzoxYjU2OjIxM2U5ZGE4OWEyY2I5ODgyNGFmYmU1NTdmYTNiMzJiMWVlNTA0MTMzYWIwN2I3MzMwMDQ1ZGIwYmU3NjcxOWE6cDpUOkY), are good sources for trusted information.
- Use trusted Web browsers like Google Chrome, Apple Safari or Microsoft Edge. These sites offer built-in security features that help protect against malicious sites.
- Always verify each link in search results before clicking on them. If in doubt, do not click on the link.
- Use reputable security software and anti-virus detection software to safeguard your device from potential threats.
- Keep your apps and devices updated to help detect vulnerabilities that cybercriminals might exploit to attack computers, phones or mobile devices.

About the National Insurance Crime Bureau (NICB): Headquartered in Oak Brook, Ill., the National Insurance Crime Bureau (NICB) is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations.

About 4WARN : 4WARN is a digital risk intelligence company that helps insurers detect and disrupt tech-enabled claim instigation before it escalates. Using proprietary analytics, large-scale digital surveillance, and expert investigation, 4WARN identifies coordinated online activity, opportunistic targeting, and emerging litigation risks that traditional tools cannot see. Insurance carriers, regulators, and reinsurers rely on 4WARN to protect their portfolios, policyholders, and reputations from digital opportunists. To learn more, visit 4WARN.com .

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by downloading our LDIConnect mobile app on the Apple App Store or Google Play Store , calling us at 800-259-5300 or visiting www.ldi.la.gov . | | | ## FOR IMMEDIATE RELEASE