After the Event Insurance – More than a promise

After 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. FINDING THE RIGHT ATE INSURER

SO WHY ARE ATE POLICIES IMPORTANT?

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 accountants where loss of earnings is considered as part of a claim.

The costs of these reports, even for minor claims can run into thousands of pounds, and for complex injuries, more than one medical expert may be required. These costs fall to a claimant to bear. If a legal case is successful, usually the costs will be recovered. But should the case be unsuccessful or discontinued due to the likelihood of a settlement no longer being viable, a claimant must pay them despite not recovering any compensation. This can be a huge financial burden.

ATE policies protect a claimant against the costs of expert and court fees (disbursements) if a legal case is unsuccessful or discontinued. The premium payable by a claimant is deferred until the end of the case, but is only payable should compensation be recovered.

NOT YOUR TYPICAL INSURANCE POLICY

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

that’s capable of providing continued protection throughout the life of a claim, no matter how long it may take. 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: - who’s the insurer responsible for paying claims? (This may differ from who a policyholder thinks they’re contracting with) are they UK registered and regulated by the Financial Conduct Authority? is the insurer a recognised name with proven experience and longevity in providing ATE insurance? Expertise ATE policies protect a Claimants put their trust in the solicitor representing them. A claimant against the costs of solicitor must have confidence expert and court fees that an ATE provider will deliver for their customer and meet (disbursements) if a legal case is their promise to pay claims. unsuccessful or discontinued. Solicitors must challenge

The premium payable by a providers to demonstrate their underwriting expertise and claimant is deferred until the end market credentials so they can of the case, but is only payable establish a relationship built on trust between all parties. ■

should compensation be

recovered. 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