Tim Boyce, dispute resolution partner at Osborne Clarke, says the proposals meant “good news for businesses that face claims by individuals who are supported by ‘no win no fee’ agreements and after-the-event (ATE) insurance.
These changes will keep costs down. There are uncertainties around the effect on the ATE insurance market for commercial claims. The offering becomes less attractive, but may still be of interest to businesses aiming to lay off some of their downside risk. It will almost certainly mean that ATE insurance providers will come under pressure to price their products competitively, which can only be a good thing”.
