Innovation is needed to protect those with a low chance of success
FirstAssist Legal Protection said insurance needs to be “more innovative to ensure it continues to effectively offer the protection needed” following the implementation of the Jackson reforms.
Head of product and pricing Andy Glynne said: “Greater innovation, explanation and incentivisation will increase take up of before the event cover and this will help potential claimants to protect themselves. There are numerous things the industry and central government could look at, such as tax incentives.”
He said this was necessary because no win, no fee would no longer offer protection for claimants unlikely to win their case: “Previously, no win, no fee has provided an option for claimants seeking damages, but going forward, if a case has limited prospects of success, the chances of obtaining conditional fee agreement funding could be reduced. Having before the event cover offers the best protection against this.”
Glynne added that brokers would be required to make customers aware of these changes and emphasise the importance of buying cover.
“The role of the broker is key here,” he said. “They are in an unrivalled position to highlight the changes that are happening and the importance of having cover in place.”