Consumers have a much poorer understanding of motor legal expenses insurance than providers believe – but it is a useful product that helps consumers find specialist solicitors, a review by the Financial Conduct Authority has concluded.
Legal expenses insurer DAS UK Group – which recently received its alternative business structure licence – has announced strong 2012 results. It reported a 10.5% increase in gross written premiums in 2012 to £178m, returning a profit of over £11m.
Companies are currently more likely to turn to before-the-event insurance rather than third-party funding to help with international arbitration cases, according to new research by PricewaterhouseCoopers.
Consumers seeking the lowest possible price when buying insurance via aggregators are leading to a drop in take-up legal expenses insurance, according to leading provider DAS. It said this will lead to a significant percentage of the population “being unable to pursue legitimate legal action”.
Legal expenses insurers have welcomed this week’s Court of Appeal ruling about the rates they have to pay non-panel firms. On Wednesday the Court of Appeal said before-the-event providers have to pay an “appropriate” rate to ensure policyholders have a meaningful freedom of choice of solicitor.
Legal expenses insurers are obliged to pay non-panel law firms an “appropriate” rate – but no more – to ensure policyholders have a meaningful freedom of choice of solicitor, the Court of Appeal ruled yesterday.
The government has today finally unveiled its long-awaited consultation on increasing the small claims limit for road traffic personal injury cases from £1,000 to £5,000, a move that would decimate the workload of many law firms. It has also proposed creating independent medical panels to diagnose whiplash.
Government hopes that before-the-event legal expenses insurance will take up the slack left by legal aid cuts and the end of recoverability – and that its cost will fall – are wide of the mark, a leading insurer has warned.