State Farm and Allstate targeted the Legal Funding industry in 2012, viewing it as a threat to their way of life because the product offering could possibly empower consumers in their struggles against big insurance companies. State Farm and Allstate waged this battle from behind groups such as the US Chamber of Commerce (the CEO of State Farm became Chairman of the US Chamber of Commerce in 2012), the US Chamber's Institute for Legal Reform (whose board the State Farm and Allstate General Counsels have historically sat on) and other insurance company front groups such as NAMIC and PCIAA, which allow these companies to stay out of the limelight in an offensive to limit consumer rights to access the courts and access capital.
The big insurance consortium accuses the legal funding industry (or "lawsuit lending", as they like to call it) of increasing insurance costs and increasing the cost of litigation (the insurance industry's cost, not the consumer's). But how could the legal funding industry be a threat? In 2012, the charitable foundations of these 2 organizations (@statefarm and @allstate) each donated more than $27 million in excess profits to charitable causes. Each company's donation is more than I estimate that the ENTIRE legal funding industry made. The size of the legal funding industry is a pittance when compared to the insurance industry.
If the insurance company is really concerned about raising costs (and by the way, insurance company profits have increased dramatically over the last 2 decades), Legal Funding is not the place to look.