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	<title>Composite Legal Expenses Ltd - Latest News</title>
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	<pubDate>Wed, 08 Sep 2010 09:13:20 +0100</pubDate>
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			<title>Insurance People - Jackson Rumbles On, June 2010</title>
			<link>http://local.composite-legal.com/27/latest-news/2010/26/insurance-people---jackson-rumbles-on-june-2010</link>
			<pubDate>Wed, 09 Jun 2010 00:00:00 +0100</pubDate>
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<![CDATA[In the Final Report of his Review of Civil Litigation Costs released in December 2009 Lord Jackson directed his proposed package of interlocking reforms at those areas of civil litigation where costs are disproportionate and impede access to justice. Andrew Welch, Head of Insurance and Partner and Deputy Chairman, Stephensons Solicitors LLP
 In the April edition of Insurance People Roger Snook wrote an entertaining and thought provoking article assessing the reaction to Lord Justice Jackson&rsquo;s Report. As a principally claimant personal injury lawyer I welcome this opportunity to respond and add my views to the debate.Roger&rsquo;s main point is that it&rsquo;s &lsquo;all about the money&rsquo; - it&rsquo;s difficult to disagree with that ultimately from the perspective of the professionals involved on all sides of the fence. While Roger took some carefully aimed shots at rapacious claimant lawyers, we mustn&rsquo;t forget that for insurers it&rsquo;s &lsquo;all about the money&rsquo; as well.   Of course claimant lawyers will protest that a reduction in their fees is likely to lead to a reduction in access to justice and service to clients. However, the many forward thinking members of the claimant&rsquo;s side of the profession have already, for years, been heavily investing in IT and other efficiency improving measures which will allow them to provide an acceptable level of service in a reduced costs environment, if the fixed costs are pitched at the right level.    The real sufferers may be those claimants who have unusual or more complex cases that do not easily lend themselves to a fixed costs regime.    It&rsquo;s also true that it is the major claimant personal injury firms who&rsquo;ve been able to afford the efficiency investment that may be necessary, which could leave high street solicitors behind.    The death of the high street personal injury practitioner may be an unintended consequence of Jackson&rsquo;s proposals, but nevertheless it is a very real risk. It&rsquo;s quite surprising that Jackson seems to envisage a more traditional style of personal injury claims handling. For example requiring that claimants entering into a contingency fee agreement are separately advised by another solicitor, when the practical consequences of his proposals will be to reward the large and efficient whilst possibly marginalising the smaller firms.    Roger suggests lawyers are approaching this on the basis that if they can&rsquo;t get their fees from defendant&rsquo;s insurers, they will charge their clients, for example by way of success fees deducted from damages. I suspect that may not be the ultimate result as market forces are likely to take over.    We have now existed for a decade or so in an environment where personal injury claimants expect to receive 100% of their damages with no deductions and it&rsquo;s going to be difficult to get that genie back in the bottle.    If the Jackson reforms were introduced, it may not be long before claimant lawyers are advertising no deductions from damages, notwithstanding they would have the right to take up to 25%. That&rsquo;s just how the market is likely to work and, indeed, Jackson seems to anticipate and welcome that. Again, this may favour the larger firms, capable of delivering efficiency savings rather than the smaller high street operators.   Virtually everyone in the industry appears to deplore referral fees, but we&rsquo;re all hooked on them, with insurers and brokers being some of the principal beneficiaries.    It&rsquo;s all very well to accuse claimant lawyers of being &lsquo;all about the money&rsquo; and simply regarding claims as sources of profit. We all know there are many insurers and brokers out there making a tidy sum from referral fees who would have to review their entire business models if Jackson&rsquo;s proposed ban of referral fees was introduced.   Claimant lawyers are also accused of protesting about claimants&rsquo; rights as a smokescreen for protecting their own profit margins. While obviously there is a self-interest in the claimant lobby, as there is with the defendant lobby, we mustn&rsquo;t forget that claimants should be protected and without their own lawyers it&rsquo;s unlikely that the paying insurance industry will perform that function for them.    As claimant solicitors, we often see very low or even derisory offers made to claimants initially, often generated by the claims valuation software routinely used by insurers. There&rsquo;s no reason to believe that insurers would change that practice if claimant lawyers were marginalised out of the system.    It&rsquo;s also interesting to consider the impact on insurers&rsquo; own practices from the requirement for speedier and more efficient claims handling. The new claims process for lower value road traffic accident claims was due to commence on the 30 April 2010 and will allow insurers 15 days to give a response on liability to a claim.    Almost certainly many claims will end up being exited out of the system, not because of inventive claimant lawyers&rsquo; activities, but simply because insurers have not geared up their claims departments to respond in these shorter timescales.    At the present time there are insurance company claims departments that cannot even open their post for many weeks, so the chances of them being able to respond within limited timescales are perhaps minimal.    The same could be said for the potential benefits which the fixed costs systems proposed by Jackson may bring. Those benefits are only available if insurers are making early and sensible decisions and then communicating those swiftly. Insurers will, as always, face the choice between spending their money on handling claims, or trying to please their shareholders and running their claims departments on a shoestring even if in the long-term that results in higher costs.     Roger is quite right, it is &lsquo;all about the money&rsquo; and no-one appreciates that more keenly than insurance company chief executives. John Mullin ACII, Chartered Insurer, Managing Director, Composite Legal Expenses Roger dismisses the legitimate concerns that the claimant will have to pay insurance premiums out of his damages. In the regrettable absence of compulsory Before the Event (BTE) legal expenses insurance - an opportunity missed by Jackson - there will be a significant likelihood of increased selection against the After the Event (ATE) insurer.    There will be a lot of &lsquo;speccing&rsquo; as solicitors decide which risks they are going to seek, and which clients should have cover. This will lead to cases with the highest initial prospects of success not going into the pool of risk.    The solicitor will wait until the prospects deteriorate until cases are put on cover. The result can only lead to increased ATE premiums, or inability to prudently provide cover to protect rights in commercial matters.   I also wonder how keen, on the personal line side, are defendant insurers going to be as they meet increased numbers of individual plaintiffs operating under contingency arrangements, whose own costs they are going to have to meet where the plaintiff has failed.   Ignoring any accusations of self-interest (that I will leave colleague solicitors to address), BTE was the solution to controlling solicitor&rsquo;s costs. The BTE insurer cannot recover own side&rsquo;s costs - it never has been able to do this. This logic is perhaps in the interests of a balanced access to justice and places the responsibility for controlling own side&rsquo;s costs firmly on the BTE insurer. This practically addresses such concerns.   I am pleased that Roger continues to acknowledge the &ldquo;sins of the past&rdquo; that defendant insurers have &ldquo;short-changed&rdquo; claimants. Surely he must realise that in commercial situations against a background of economic difficulty there will continue to be attempts to &ldquo;short-change&rdquo; claimants.    I do fear for the claimant with the smaller type claim embracing personal injury, hire and accidental damage/excess. There is little meat on the bone for a serious contingency fee here and I suspect that without legal expenses muscle, many in need will be left high and dry between the &ldquo;short-changing&rdquo; defendant insurer and the solicitor, who sees little profit in the small case even though the defendant insurer, if winning, will still pick up own costs.    I wish Roger was more of an advocate for compulsory BTE and the ability to have non-legal experts (in-house) negotiating with the defendant insurer in simple cases at low cost to both sides.   I am not certain that I agree with Roger that a change in government, or even a hung parliament or even a government of national unity, would effect these proposed changes. I think there will be greater economic priorities. Indeed even Justice Secretary Jack Straw has left himself with plenty of &lsquo;wiggle&rsquo; room regarding implementing these proposed changes.
 
To read the article on the Insurance People Website please click here.]]>
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			<title>Enhanced 24/7 Legal Advice Line for IIB members</title>
			<link>http://local.composite-legal.com/27/latest-news/2010/25/enhanced-247-legal-advice-line-for-iib-members</link>
			<pubDate>Tue, 18 May 2010 00:00:00 +0100</pubDate>
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<![CDATA[Enhanced 24/7 Legal Advice Line for IIB members The Institute of Insurance Brokers (IIB) has re-launched its 24/7 Legal Advice Line for members. In addition to providing free, unlimited access for members to relevant and practical advice relating to any Legal, Employment or Tax matter, there&rsquo;s now the added benefit of specific advice on all aspects of debt, cash-flow and insolvency matters, either relating to the member&rsquo;s business or arising from dealings with clients and suppliers.    IIB&rsquo;s Chief Executive, Barbara Bradshaw, comments:                           &ldquo;With the impacts of the recession still coming through, we&rsquo;ve enhanced the benefits to members to include exactly the type of help that&rsquo;s relevant today. The recession has resulted in a sharp increase in debt, cash-flow and insolvency issues generally &ndash; issues that can often take a business&rsquo;s eye off  the ball. Practical and commercial assistance is now available to our members on how to deal with these crucial aspects of the current volatile market.&rdquo;    The 24/7 IIB Legal Advice Line is provided by one of the UK&rsquo;s leading legal expenses insurance providers, Composite Legal Expenses. Composite&rsquo;s Business Development Manager, Tim Mullin, adds:                       &ldquo;Never has easy access to qualified and experienced legal advisors been so necessary.  For example, we&rsquo;ve witnessed a dramatic increase in Employment Disputes over the last two years with Employment Tribunal Applications doubling. And then there&rsquo;s the burden of HMRC investigations, let alone on-going changes in legislation. We&rsquo;re delighted to be partnering the IIB in this essential member service.&rdquo;   The Institute of insurance Brokers (IIB) has around 1000 member firms in the UK representing their interests to HM Government, the FSA, the European Commission, Parliament and other relevant bodies &ndash; ensuring their voice is heard in the corridors of power. Please see www.iib-uk.com The Composite Group is one of the UK&rsquo;s leading providers of commercial and personal legal expenses and assistance products and services. Supported by 24/7 legal advice, HR and H&S help-lines plus on-line services, Composite&rsquo;s products are distributed through the UK insurance broking market and via specialist affinity groups and schemes.   Please see www.composite-legal.com   For further information please contact either: Barbara Bradshaw, IIB&rsquo;s Chief Executive T: 01933 410003   E: bb@iib-uk.com or Tim Mullin, Sales Manager Composite Legal ExpensesT: 0871 423 5240 E: tim@composite-legal.com]]>
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			<title>Insurance People - Ashes to Ashes, May 2010</title>
			<link>http://local.composite-legal.com/27/latest-news/2010/24/insurance-people---ashes-to-ashes-may-2010</link>
			<pubDate>Tue, 04 May 2010 00:00:00 +0100</pubDate>
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<![CDATA[Fire up The Quattro
From a legal expenses insurance perspective the Jackson Report is a bit like Ashes to Ashes. I feel as if we have been transported back to the late 1970s/early 1980s and DCI Gene Hunt is there to bash the living daylights out of these &ldquo;scum&rdquo; in the underworld of the After the Event (ATE) market.   However I wonder if the created character of Hunt, having had the rough edges knocked off, is such a source of incorrectness. Likewise I dare to suggest that even from a defendant and legal expenses point of view it&rsquo;s not quite as bad as the protestors make out.    You can bury your head in the sand and hope that the changes may never happen as we have a new government on its way in with fresh faces. We have no certainty as to what its political make-up will look like. Neither do we know whether it, or the MOJ, will perceive these reforms as urgent in the light of the many pressures that it will face. Not the least of which will be the ability to govern with a small majority, or even in a short-lived minority position.   Oh! DCI Hunt please let me join you back in the good old days when:- 
*  Legal expenses covers were comprehensive with proper Before the Event (BTE) covers that were not cut back to satisfy the marketing and pricing needs of insurers carrying a poor protection of rights that is lost in the main package wording. Even these poor covers today are not cost effective from an underwriting point of view.*  The in-house claims department of the legal expenses provider would take on the mighty insurer before the case went out to solicitors. This had so much scope for common sense, negotiation and mediation that was not developed primarily because of vested interests in the legal world, and complete lack of reform on the part of those responsible for legislation.*  There was a decency of function before the arrival of the buyers and sellers of litigation, and the marketing of ancillary costs such as car hire, medical examinations and other expert witnesses. Many of these new arrivals have become opportunities that have been hijacked by defendant insurers themselves to improve their bottom line.  
The Add-on Weakness of Access to Justice 
My great fear is that unless the distribution methods - in particular those of BTE - are changed we will find ourselves back in the dark days before LEI came to the UK with one law for the rich, and very little justice for those in the middle.   And the poor will now be significantly worse off as the State Legal Aid they may have had recourse to in the 1970/80s does not exist now.   Certainly claimant personal injury solicitors will claim that Lord Jackson&rsquo;s civil litigation costs&rsquo; review will have a detrimental effect on access to justice. No longer would success fees (allegedly covering the cost of &ldquo;lost&rdquo; cases) and ATE insurance premiums be recoverable from the opposing party (in practice the defendant insurers).    So the proposed reforms introduce &lsquo;cost shifting&rsquo; for commercial claims and the loser pays. However there is qualified one-way cost shifting for personal injury and defamation claims.    Contingency fees (where the solicitor is paid by way of a share in the client&rsquo;s damages) are proposed to be permitted, however the losing party will pay costs as at present. Alternative dispute resolution (ADR) is to be encouraged, but should not be compulsory. Missed Opportunities & New Legal Structures It seems to me a great pity that the opportunity has been missed to make BTE legal expenses insurance compulsory. Its affordability with significantly greater numbers of insured persons and the eradication of selection would make it possible to replace conditional fee agreements and ATE insurance at a stroke.   In addition to uncertainty about the implementation of the Jackson report we would be wise to start anticipating the outcome of the &lsquo;Clementi&rsquo; proposals that will enable financial service organisations to obtain stakes in, or fully acquire law firms.    The resulting legal structures do seem to fit in with some of the Jackson proposals. In particular the ability to negotiate with strength but with low cost common sense in-house methods will reduce legal costs for both defendant insurers and those plaintiffs with genuine legal rights to address.  
What to do now   
 
So insurance intermediaries, watch this space carefully as the flag of events is unfurled. Let&rsquo;s see if there are opportunities for hybrid BTE/ATE products. After all, it&rsquo;s all legal expenses insurance -whether before or after.    In the meantime intermediaries will be doing their clients a big favour by encouraging them to purchase good and wide stand alone personal and commercial BTE covers to ensure funding is in force.    Do not rely on the add-ons included with mainstream covers - you get what you pay for. If in doubt, take it out and substitute your own tailor-made cover. Do a proper broking job and you may be surprised to find that your insurance commission income will be improved.   While we wait to see if we are going to get a ride in DCI Hunt&rsquo;s Audi Quattro, or experience the &lsquo;back to the future&rsquo; changes that the MOJ may introduce, it will do us no harm to reflect on the good things of the past - warts and all - because the present is a very unsatisfactory state of affairs.
John Mullinwriting in Insurance People, May 2010 ]]>
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			<title>New appointment at Composite Legal Expenses</title>
			<link>http://local.composite-legal.com/27/latest-news/2009/23/new-appointment-at-composite-legal-expenses</link>
			<pubDate>Wed, 23 Dec 2009 00:00:00 +0000</pubDate>
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<![CDATA[Duncan Wood, LLB has been appointed National Business Manager at Composite Legal Expenses.
 
Duncan is responsible for business development in the insurer, insurance broking and legal sectors, as well as the development of Composite&rsquo;s specialist schemes portfolio. 
 
Commenting on the appointment, Composite&rsquo;s Business Development Manager, Tim Mullin, said:
 
            &ldquo;With Duncan having previously worked in the legal expenses insurance arena and with the experience he has gained from working in the legal and recruitment sectors, he was our ideal candidate for the position of National Business Manager. We&rsquo;re delighted to welcome Duncan on board and will be continuing to grow our Business Development Team in            line with our growth strategy.&rdquo;
 
 
Duncan Wood, LLB, National Business Manager]]>
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			<title>Insurance Brokers' Monthly - When times are tough - the tough get cover!</title>
			<link>http://local.composite-legal.com/27/latest-news/2009/22/insurance-brokers-monthly---when-times-are-tough---the-tough-get-cover</link>
			<pubDate>Wed, 16 Dec 2009 00:00:00 +0000</pubDate>
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<![CDATA[In a Brokers Monthly article on legal aid cuts, Composite's MD, John Mullin, comments that the position remains the same as it did when the first UK Legal Expenses Insurers started offering cover in 1975.
Please access the full article here Or alternatively access this link to view the whole edition of the magazine. John's article is on page 26-27.

For full article please refer to the December 2009 / January 2010 edition of Insurance Brokers Monthly]]>
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			<title>Insurance Age - Composite comments on hold harmless agreements</title>
			<link>http://local.composite-legal.com/27/latest-news/2009/21/insurance-age---composite-comments-on-hold-harmless-agreements</link>
			<pubDate>Mon, 12 Oct 2009 00:00:00 +0100</pubDate>
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<![CDATA[In an Insurance Age article on hold harmless agreements, Composite's MD, John Mullin, comments on the dubious nature of hold harmless agreements and argues that there is a &ldquo;strong case for the Financial Services Authority (FSA) to get involved&rdquo;.For full article please refer to the October 2009 edition of Insurance Age. 
You can access a copy here, then turn to page 38 for the appropriate article. ]]>
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			<title>Broker Expo - Ricoh Arena - 12th November</title>
			<link>http://local.composite-legal.com/27/latest-news/2009/20/broker-expo---ricoh-arena---12th-november</link>
			<pubDate>Mon, 24 Aug 2009 00:00:00 +0100</pubDate>
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<![CDATA[
Now in its fifth successful year, 2009&rsquo;s Insurance Age Broker Expo promises to be the biggest and best yet. With a bigger and better chill-out zone, over 80 exhibitors, expert led workshops and unparalleled networking opportunities, this is one event you cannot afford to miss.
Nearly 500 brokers attended the Insurance Age Broker Expo 2008 at the Ricoh Arena &ndash; home of Coventry City Football Club &ndash; making it the best Broker Expo ever.Come and see us on Stand 80 at the Ricoh Arena on the 12th November 2009.
Should you wish to book an appointment to meet one of our representatives whilst your there then please contact Tim Mullin on 0871 423 5240 or email tim@composite-legal.com 
For further details or if you would like to register to attend the event please visit the Insurance Age Expo 2009 website www.insuranceageexpo.com.]]>
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			<title>Updated Policy Wordings</title>
			<link>http://local.composite-legal.com/27/latest-news/2009/19/updated-policy-wordings</link>
			<pubDate>Thu, 20 Aug 2009 00:00:00 +0100</pubDate>
			<description>
<![CDATA[In accordance with recent policy decisions from our regulators, Composite Legal Expenses has updated its policy wordings.  The new wordings are applicable to all new business and renewals invited after 20th August 2009.  There is no change to the cover unless specifically notified.  If you are using pre-printed wordings please replace these with the new wordings or contact the Broker Support team on 0871 423 5251 for further assistance.]]>
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			<title>Brokers' Monthly: 'Has the leopard changed its spots?'</title>
			<link>http://local.composite-legal.com/27/latest-news/2009/18/brokers-monthly-has-the-leopard-changed-its-spots</link>
			<pubDate>Thu, 23 Jul 2009 00:00:00 +0100</pubDate>
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<![CDATA[Article by Composite's MD John Mullin 'Has the leopard changed its spots?' on the subject of motor claims costs.
Mullin_Snook.pdf]]>
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			<title>Composite Legal Expenses sponsors Brokers' Monthly Networking Event</title>
			<link>http://local.composite-legal.com/27/latest-news/2009/17/composite-legal-expenses-sponsors-brokers-monthly-networking-event</link>
			<pubDate>Thu, 04 Jun 2009 00:00:00 +0100</pubDate>
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<![CDATA[Composite are again sponsors of the annual Brokers' Monthly Networking Event being held in Bicester on 2nd October 2009.   This year's Brokers' Monthly Networking Event is proving to be as popular as ever, so be sure to book early. It's on Friday 2 October at The Holt Hotel, Bicester.   The cost? £67 per person for a champagne reception, dinner with wine, drinks, plus entertainment. Accommodation, including a full English Breakfast, is £68 for a single room and £85 for a double.   The networking starts earlier each year with many arriving early afternoon. As John Mullin, Managing Director of Composite Legal Expenses, says:   "It's an informal, fun, modestly priced networking event in a pleasant country hotel and there are no hidden costs. The networking has certainly worked for us. We'll definitely be there!"   Don't miss out - book now by emailing Jeni Hall at Brokers' Monthly: jeni@brokersmonthly.co.uk.   As always, a big thank you to our sponsors whose support helps us keep the cost down.]]>
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