Jacqueline Harvey talks about who today's consumers of legal expenses insurance are, in short - An increasing range of those using dispute resolution services.

1. The speed
factor
Are law firms modernising at the same pace as the third parties
they work with, and what effect does this have on client care?
he On-Demand Economy is revolutionising commercial
behaviour around the world. Firms like Airbnb, Uber and
Deliveroo have capitalised on intuitive digital technologies
to transform their respective markets. These companies have
reaped the benefits of building their businesses to fulfil consumer
demand for immediate solutions.
Although companies in specific sectors are enjoying success, that
doesn’t mean that the on-demand delivery of goods and services
in other areas has been tackled. A recent survey by LMS, a leading
legal conveyancing outsourcer, recently reported that 63% of
home buyers polled thought that better technology would speed
up the house buying process and 57% said that it would reduce
stress. Conveyancing practices were seen as lagging behind
mortgage brokers and lenders.
In the conveyancing industry, the good news is that many search
providers have built comprehensive online platforms to streamline
the supply of conveyancing information to solicitors, freeing them
up to focus on providing better care to clients. Conveyancers can
readily tap into the value-added services at no additional cost.
Our online ordering process offers a few great examples. Our
intuitive mapping tool uses Land Registry data to identify property
boundaries more accurately, suggesting relevant searches and
speeding up turnaround times. The site also offers information on
search due dates and allows conveyancers to access completed
searches 24/7. We believe it is important to introduce greater
transparency and speed to the search process, as both are key
factors for home buyers.
However, we also recognise that many of our customers operate
in different ways, with different processes and levels of technical
sophistication. We also have a number of services in place
to manage the ordering process for them. This includes the
management of multiple searches, mapping of boundaries and
new-build identification.
In line with other industries, it won’t be long before speed also
becomes a factor when choosing a conveyancing firm. Law firms
that are unable to respond run the risk of being left behind. Yet, for
those who use technology to refine and improve their client care,
there is a great opportunity to capitalise on digital transformation.
It’s now well within the reach of all conveyancing departments to
free up important time for fee-earners and build the reputation of
their firm.
Susan Fairbrass, Marketing Manager, Geodesys.
Q: Who are
today’s
consumers of
legal expenses
insurance?
A: An increasing range of those using dispute resolution services.
egal expenses insurance provides protection against the
costs of being involved in a legal dispute. There are two
types of policy: ‘Before the event’ (BTE), which provides
cover where a future set of circumstances occur that could involve
the insured in a legal dispute, and ‘After the event’ (ATE), which is
potentially available once they have. BTE can cover own costs and
disbursements, as well as ‘adverse’. With ATE the emphasis is on
adverse. Each is provided up to a specified amount/limit.
In the UK, BTE is typically purchased alongside other insurance
products (e.g. motor, home, or liability cover etc.). It will often
include helpline advice services as a first port of call should an
‘event’ occur. ATE is provided on a ‘bespoke’ basis and is tailored
to specific dispute circumstances. It will typically involve levels of
cover in excess of those available for BTE.
BTE grew out of the motor sector. It diversified into providing
protection to employers for employee claims, and into ‘consumer’
products for disputes relating to personal injury, property, goods
and services and general contract etc. Its scope continues to
expand, and there is an increasing focus on particular dispute
types, e.g. construction, and intellectual property and specific
niche contract issues such as school fee disputes. In his review of
civil litigation costs, Lord Justice Jackson emphasised the potential
for the use of BTE.
ATE has its roots in the personal injury sphere where it developed
alongside the conditional fee agreement ‘regime’. CFAs and ATE
in tandem enabled claimants to pursue claims without having to
‘fund’ their own costs, or face liability for an opponent’s costs on
a failed claim. The advantage of offsetting adverse risk became
apparent for claims in other dispute arenas, for both ‘consumer’
and commercial users. Some claimants cannot afford their own/
adverse cost risks; others have the financial capacity to do so,
but choose to offset a part of the risk to free up resources for
use elsewhere. Another attraction of ATE is its growing relevance
where security for costs could be an issue. It can be used for high
and lower value claims (subject to proportionality) and is likely to
prove a good ‘fit’ for claims in the anticipated fixed cost regime.
It can be used irrespective as to how own costs are dealt with (so
can sit alongside standard paid retainers, third party funding, as
well as CFAs and DBAs). It can also be tailored for use in different
resolution forums, be that for litigation, in a tribunal, for arbitration
regimes and so on.
Legal expenses cover has developed into part of the overall costs
landscape, and has become a pre action consideration for an
increasing range of claimants.
Jacqueline Harvey, Underwriter, AmTrust Law.
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August/September 2017 Modern Law 27
EDITORIAL BOARD