The lawyer behind a class action against Southern Response expects the insurer will feel very exposed now the lawsuit has overseas funding.

Australian owned Litigation Lending Services has agreed to fund the class action, with claimants only paying a fee if the action is successful.

Class Action organiser Grant Cameron says the move shows the funders absolute confidence in the case, which is a warning shot to Southern Response.

"I think the insurer must be feeling vulnerable. By doing it this way you get a lot of people, you will then be able to present the court with a very clear picture of what the insurer is doing across the board."

Cameron believes it was the financial toll holding people back originally, but the funders have removed the risk.

"We're very, very confident of a positive outcome and they will be very much better off than where they stand now.

"If for some reason it goes awry, they won't have to spend a single dollar."

The fees of Litigation Lending Services and Cameron's law firm won't amount to more than 20% of the settlement.

Cameron says it's not too late for Southern Response to avoid court action if they resolve matters now.