Brian Raincock, Litigation Protection managing director, is leading attempts to break the deadlock between liability and after the event (ATE) insurers over the recoverability of conditional fee premiums.

ATE insurers have complained that liability insurers are refusing to refund winning claimants' ATE insurance premiums, as required by the Access to Justice Act.

Raincock criticised liability insurers for what he described as their attempts to hide behind legal small print on the issue.

“Liability insurers are breaking the law and we need to resolve the situation quickly because it is doing tremendous damage to the consumer,” he said.

He claimed the dispute was causing massive uncertainty in the ATE legal expenses market and that action was urgently needed.

“We have got to get a new attitude into the ATE market, otherwise the insurance industry will be brought into disrepute,” he added.

The boss of Litigation Protection called a meeting of 15 ATE insurers and claims management companies last Friday (March 23), to try to find a solution to the impasse.

Raincock said the mood of the participants was conciliatory and that they wanted the ATE market to overcome its teething troubles.