Is it the end for After The Event Insurance?

The introduction of the Legal Aid Sentencing & Punishment of Offenders Bill (LASPOB) will result in the end of the recoverability of success fees and after the event insurance between the parties. The introduction of qualified one way costs shifting (QOCS) will potentially render ATE superfluous or will it?

It is proposed that a limited form of ATE will be permitted in clinical negligence matters limited to funding of disbursements, but it is doubtful whether this will present a sustainable form of business for insurers.  So what other work will be insurable? A savvy firm may survive selling ATE on the basis of no sleepless nights. Whilst the introduction of QOCS is intended to mean the end of defendants seeking to recover their costs from losing Claimants, others see it as the future hotbed for satellite litigation. Likewise, Lord Jackson’s proposal that Before the Event Insurance will be the new ATE insurance but will it take off particularly in light of the banning of referral fees upon which BTE is reliant. As such, it is envisaged that the cost of a proper BTE package will be equivalent to in price to purchasing ATE, so why would anyone buy BTE on the off chance that they need to make a claim, when they can obtain ATE as and when required.

It is clear that the future for ATE is uncertain, but we at Carlisle Legal Costing are keeping our ear to the ground and keeping you all informed.

Why not put us to the test and contact us for advice on funding, retainers, offers or other costs queries.