Future After The Event Insurance Products

Posted by radford on April 12, 2012

With the formation of Alternative Business Structures (ABS) there is likely to be a contraction in the legal market with less high street solicitors. ABS’s and those solicitors that remain will be faced with:

1. A competitive market where success fees (in future to be deducted from claimants damages) will be subject to competitive market forces with the likelihood of ABS’s and solicitors not charging a success fee.

2. ABS’s and solicitors will also be faced with a reduction in fixed costs although the level is still to be decided.

3. This will add pressure on business models

There is a risk to claimants of having to pay own disbursements on lost cases as well as the residual risk arising from Qualified One way Costs Shifting (reasonableness, interaction with Part 36 offers and possibility of a claimant having to make a contribution to defendants costs on lost cases). These rules have yet to be defined.

Taking into account the competitive pressures and market forces referred to above there remains the likelihood of After The Event insurance products being developed to cover these risks. Such products will also aid ABS’s and solicitors in arranging funding for work in progress if those costs are either recoverable or insured.

Financial and Legal insurance will be looking closely at developing alternative insurance products and, as the rules develop will positively explore the various options to ensure a client is adequately covered and can pursue access to justice without risk.

Find out more about our After the Event Insurance

ATE Insurance

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

Find out more about our Before the Event Insurance

BTE Insurance

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

Find out more about our Home Buyers' Costs Insurance

Home Buyers' Costs Insurance

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.