An international litigation funder is backing a proposed class action against insurance company Southern Response over earthquake damage claims.
Christchurch lawyer Grant Cameron said Australian company Litigation Lending Services had agreed to underwrite the action.
Mr Cameron said that allowed the action to go ahead on a no-win, no-fee basis.
"The policyholders now have the support of a company that's thoroughly assessed the case," he said.
"They believe it's an eminently winnable case and this will make a huge difference. No-win, no-fee means no financial risk for policy holders."
The backers' fee would not exceed 20 percent of a successful claim, Mr Cameron said.
More than 3000 Southern Response customers were yet to settle and he hoped to hear from many of them in the next month, he said.