No-win no-fee is here to stay, says Jackson review

Legal expenses insurance for motoring policies could become mandatory under suggestions made by the Lord Jackson review into costs litigation.

The review asks for insurers’ views on how to incorporate before-the-event legal expenses insurance in motoring cover.

Other suggestions made by Lord Jackson into reforming costs litigation include American-style class actions and raising the bar from £1,000 to £5,000 for the small claims court to deal with personal injury litigation.

Nicola Evans, partner at law firm Browne Jacobson, said the review indicates that conditional fee arrangements – no win, no fee – are here to stay: “This wide-ranging review contains a huge amount that is of interest to the insurance community.

“Lord Jackson has suggested that BTE insurance should be considered as mandatory in cases of motor insurance. He is also asking the insurance industry to actively investigate how that might work and how such insurance might be promoted.

“In addition, the positive noises he is making about the future of class actions in the UK, have potentially huge implications.”

A final review containing Lord Jackson’s recommendations is expected at the end of the year.

Mike Noonan, head of strategic claims and management at QBE, said: “It is an opportunity that we could miss out on unless insurers gather themselves to respond in a positive, consumer-focused and evidence-based way.”