The Government has published its response to its consultation on enhanced fees for possession claims and general applications in civil proceedings, and further fee proposals. http://bit.ly/1RTMMQV
The Government says it has considered all of the responses to the consultation very carefully. Despite the majority of respondents disagreeing with proposals to increase civil court fees and introduce first tier tribunal fees the Government has decided to proceed with most of the proposals for fee increases set out in the consultation. The Government wishes to ease the burden on the taxpayer and bring down the deficit and while recognising that the increases may make some litigants reconsider whether they wish to pursue litigation in light of the cost and the prospects of success, including the likelihood of recovering a judgement against the respondent it does not overall believe that the proposed fee increases will prevent people from bringing proceedings. The increased fees are expected to generate £15m per annum once parliamentary time allows for the statutory instruments to be passed..
In particular our landlord policyholders who may need to seek repossession and others wishing to pursuing money claims should benefit from enhanced value from their LEI covers.
Welcome to ARAG UK's Blog where we provide news and discussion on the issues facing the legal expenses market.
Friday 18 December 2015
Monday 14 December 2015
Clarifying the rules on unbreakable bundles
FCA Policy Statement
15/22. General Insurance Add-Ons Market Study –
Remedies: banning opt-out selling across financial services and supporting
informed decision-making for add-on buyers
Readers will appreciate that as a General Managing Agent it is beyond
our remit to interpret the FCA's add-on remedies policy statement 15/22
(PS15/22) on behalf of our agents. The document sets out:
- rules and handbook guidance in relation to the FCA's ban on opt- out selling of add-on insurance effective from 1 April 2016;
- non-handbook guidance on giving appropriate and timely information when selling add-on insurances so that customers can make an informed decision. The non-handbook guidance applies immediately and the FCA expects firms to have made the necessary changes to their sales journey by 30 September 2016.
This Blog provides our comments on PS15/22 with regard to the opt-out
selling ban of add-on insurance as we have witnessed some confusion about the
new rules.
We have received queries from insurers and brokers who are concerned
about compliance advice they have been given. In particular firms are being advised that "auto-
embedding" of covers such as legal
expenses and assistance services insurance within a primary insurance product –
such as home buildings or contents
policies is caught by the FCA ban. The
FCA refers to this practice as "bundling".
While we cannot give compliance advice, it may help to highlight what
the FCA has said in PS15/22.
PS15/22 paragraph 2.4
sets the scene by referring to an “optional additional product". This leads to an
early inference that the ban is not intended to apply to covers that are always
automatically included within a primary product.
Paragraph 2.10 describes the scope of the remedy, "this
remedy would apply to any add-on product when
it is sold alongside a regulated financial primary product…….This means
that add-ons such as title insurance sold in addition to a mortgage would be
covered, as would warranty cover sold in addition to home emergency insurance". This description is clearly with odds with
the position where additional cover is provided as a feature that is integrated
into a primary product.
The FCA helpfully devotes paragraphs 2.16 and 2.17 to
clarifying that because there is no optionality in an "unbreakable
bundle" – the customer buys the whole of or none of the features –
"the ban on opt out selling will not apply". They go on to assert that the ban will apply
where a menu of covers is available for the customer to select from. While acknowledging that "unbreakable
bundles can reduce customer choice, in the sense that the customer is unable to
tailor the bundle to their individual needs (the FCA) does not believe the ban
on opt-out selling is the appropriate way to address this."
In conclusion the effect of 2.16 and 2.17 allows LEI, Home
Emergency or other products that may formerly have been offered to customer as
an add-on to a primary insurance
product to be integrated into it. An
example would be an unbreakable bundle that provides home buildings, home
contents, accidental damage cover, annual travel and legal expenses
insurance.
We would say that including legal expenses and assistance
services as an integral policy feature by "auto-embedding" cover
makes more sense at this time than ever before. The alternative
"opt-in" method of sale risks individuals missing out on valuable
insurance protection.
Thursday 3 December 2015
Ministrial statement on criminal court charges
Due to concerns raised by the Justice Select Committee Michael Gove has made a written ministerial statement (https://www.gov.uk/government/speeches/courts) announcing that the criminal courts charge shall be quashed from Dec 24 pending a further review of how courts take money from offenders ( including fines, the victim surcharge, compensation orders, prosecution costs and the Criminal Courts Charge).
The Lord Chancellor’s reaction is refreshingly responsive in a positive way.
We can only speculate regarding how he may respond to the review of Employment Tribunal Fees.
We wonder whether he will listen and do the right thing by reconsidering the level of fees ?
Tuesday 24 November 2015
Simply the best: Three more awards confirm ARAG's premier credentials
Votes were cast in a nationwide poll of professional insurance brokers and announced at a gala ceremony in London's Royal Garden Hotel attended by the UK's leading insurers. Now in their sixth year, the Underwriting Service Awards are unique.
They are based on large-scale objective input from UK commercial and specialist broking professionals, submitted through the annual Business Insurers Insight Study. Brokers graded the insurers they have worked with during the previous 12 months. These are some of the comments made by brokers about why they support ARAG;
“Strong support for the customer and the broker, flexible approach to writing business, access to decision makers and key contacts”
“Flexibility, willingness to work together to create new products. Fairness.”
“Good lines of communication and regular contact from BDM. Claims handled swiftly and claims met”
“We are delighted that so many of our partner companies were either winners or shortlisted too”, comments Andy Talbot, ARAG Head of Sales. “It is very encouraging that over three years of huge turmoil in the legal services arena we continue to receive endorsement of our efforts to be the very best people to work with.
“The accolades are an outstanding tribute to everyone who has worked so hard to ensure we deliver on our promises, and in the most professional manner. As the courts system faces yet more changes, we believe ARAG is well-placed to provide affordable access to justice to everyone who has been disadvantaged by the actions of others. Our legal protection cover, emergency assistance products and advice services are available to millions of people through professional intermediaries either in addition to – or as part of – business, home, motor and landlord insurances”.
-ends-
Further information on how ARAG stays on top can be viewed in its latest newsletter at http://anyflip.com/jhsj/zibd
Underwriting Services Awards 2015. ARAG wins...
– Legal Expenses Team of the Year for the 3rd year running.
– Underwriting Service Awards Team of the Year for the 2nd year running
– Managing General Agent Team of the Year for the first time
For more information please contact:
business partners, by winning three prestigious, independent awards. At the Underwriting Service Awards the company took the Legal Expenses Team of the Year award for the third year running plus also the Managing General Agent (MGA) award and like last year, the Underwriting Service Awards Team of the Year.
- Andy Talbot, Head of Sales
0117 917 1685/ andy.talbot@arag.co.uk
- David Haynes, Head of Underwriting & Marketing
0117 917 1684 David.Haynes@arag.co.uk
- Rachael Wornes, Marketing Manager at ARAG
0117 917 1578 / pressoffice@arag.co.uk
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