ATE Insurance post LASPO - April 2013

Posted by Mike on February 4, 2013

As we all know, legal expenses insurance has come under considerable scrutiny in recent years and the legal protection insurance market, as a whole, has been holding a collective breath to see how these changes will affect us.

The latest changes to legal expenses insurance will result from the introduction of the LASPO Bill in April 2013.  LASPO will effectively see the end of recoverability of success fees and, in most cases, After The Event insurance premiums. In addition, the Fixed Recoverable Costs consultation has concluded and we now await the publication of the final rules.

We also await the SRA final outcome and principle led rules in relation to the referral fee ban. It remains to be seen how these alterations will impact on legal expenses insurance, moving forward.

A key component of the various changes to legal protection and litigation will be the publication of the Qualified One Way Cost Shifting rules which are due to be announced on 8th February 2013.

Both solicitors and legal expenses insurers will be anticipating those changes and working hard on models to ensure the viability of their businesses and to meet the perceived customer and client demand for future products and services.

Nick Garner, Managing Director at Financial & Legal Insurance says

‘We have a strong appetite to continue to provide ATE insurance in its revised format, to ensure that solicitors can provide best cost legal protection advice to their clients in what, for solicitors, will become a competitive market.

Whilst we cannot finalise our future legal expenses insurance products, pending the outcome of the Qualified One Way Cost Shifting rules, Financial & Legal Insurance will look to provide products that provide:

  • market leading and competitive legal protection insurance
  • clients with the necessary protection against having to pay costs in a legal dispute’

As a company with considerable experience in legal expenses insurance and after the event insurance, in particular, Financial & Legal Insurance are keen to offer flexibility and availability for both the client and solicitor when evaluating which policies are best suited to individual cases. Our policies will be comprehensive, cost-effective and can be tailored to reflect specific requirements.

We will be seeking to offer after the event insurance with both fully deferred and upfront payment options with differing premium levels with flexibility for the solicitor to cover clients on a block or single policy basis.

Financial & Legal Insurance has a reputation for being a responsive, reliable and flexible name in legal expenses insurance. Naturally, we will be proactive in creating products that best serve the market and enable us to continue to build proven and credible partnerships.

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ATE Insurance

After the event insurance covering: personal injury, road traffic accidents, clinical negligence, industrial disease, personal and commercial contractual disputes, debt recovery

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Before the event Motor, Family, Commercial and Landlord policies covering; uninsured loss recovery, personal injury, property, employment and legal disputes

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Protection from a property sale falling through as a result of: withdrawal from sale, adverse legal search, property valuation, redundancy, damage to the property, structural defects, terminal illness.