FINANCIAL & LEGAL
After the Event Insurance – MORE THAN A PROMISE
A
fter the Event (ATE) insurance is unique. For all insurance customers, the moment it really matters is when they make a claim, but for ATE this is often many years after a policy is taken out. A good ATE product relies on a provider keeping its promise to pay, backed up by proven experience, stability and financial solvency in order to do so.
SO WHY ARE ATE POLICIES IMPORTANT?
that’s capable of providing continued protection throughout the life of a claim, no matter how long it may take.
FINDING THE RIGHT ATE INSURER Key considerations: Financial security When it comes to assessing financial security, solicitors and claimants need to understand who the ultimate insurer is for any ATE policy. Fortunately, there are some easy questions to ask: -
Injuries can be life changing. Pursuing an injury claim not only involves solicitor fees, but also costs to instruct appropriate specialists, like medical experts, to provide evidence reports. Other experts may also need to be called upon, for example who’s the insurer responsible for paying claims? accountants where loss of earnings is considered as part of (This may differ from who a policyholder thinks a claim. they’re contracting with) The costs of these reports, even for minor claims can run are they UK registered and regulated by the into thousands of pounds, and for complex injuries, more Financial Conduct Authority? than one medical expert may be required. These costs fall is the insurer a recognised name with proven to a claimant to bear. If a legal case is successful, usually the experience and longevity in providing ATE costs will be recovered. But should the case be unsuccessful or discontinued due to the likelihood of a settlement no insurance? longer being viable, a claimant must pay them despite not recovering any compensation. This can be a huge financial burden. Expertise ATE policies protect a claimant Claimants put their trust in the ATE policies protect a against the costs of expert and solicitor representing them. A court fees (disbursements) if claimant against the costs of solicitor must have confidence a legal case is unsuccessful or that an ATE provider will deliver expert and court fees discontinued. The premium for their customer and meet payable by a claimant is (disbursements) if a legal case is their promise to pay claims. deferred until the end of the Solicitors must challenge unsuccessful or discontinued. case, but is only payable should providers to demonstrate their compensation be recovered. The premium payable by a underwriting expertise and
NOT YOUR TYPICAL INSURANCE POLICY
claimant is deferred until the end of the case, but is only payable should compensation be recovered.
ATE policies are unlike insurance products we’re all familiar with. Car and home insurance policies are valid for a contracted time period. Claims tend to be restricted to losses happening within that time and typically for non-liability claims, they’re settled quickly when they’re for tangible items such as car repairs and losses to personal possessions. ATE is different. Policies are effectively open ended until the legal claim has concluded. That’s where the importance of an insurer’s financial security comes in to play. Insurers need adequate solvency to pay claims when an ATE policy is called upon, often many years after it’s taken out. Solicitors must have confidence in recommending an ATE product to clients
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market credentials so they can establish a relationship built on trust between all parties. ■ Author: James Barclay – Head of Sales & Distribution, Allianz Legal Protection
Tel: 03702 434 340 or Email: alpdistribution@allianz.co.uk Web: www.allianz.co.uk/legal-protection
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