More action on housing disrepair

Events in the news have focussed attention on the sometimes indifferent attitudes towards keeping rented properties in healthy and proper condition. We are working with a number of solicitors who are taking action on behalf of tenants against their landlords, specifically housing associations or local authorities themselves, in instances where properties fall short of the required standard.

The object is to remedy faults, and secure compensation where appropriate, for people who would previously only have had a small voice against big organisations.
ARAG has been helping grow this sector and it fi ts neatly with our aim to continually diversify in the aft er the event market.

Housing disrepair claims typically follow a pattern and because of this we are able to offer a fixed premium, deferred until the end of the case, with standard cover of typically £10,000 for all disbursements and adverse costs.

It is excellent news both for residents of dilapidated, unrepaired or damp dwellings and for those solicitors who have become specialised in this area. As firms become unsettled by negative developments that affect the flow of business in the ATE market, such claims will surely enjoy further interest.

ARAG’s Housing Disrepair cover can be used for either fast or multi-track claims.

Necessity is the mother of invention

Should you need proof that creativity is spurred on by adversity, look no further than the legal expenses sector. ARAG is rolling out new products, taking technology in new directions, and helping grow new business for our partners. All this, despite the challenges on both the political and legal landscapes.

Fee caps, whiplash reforms, increases in small claims levels plus Brexit, place special demands on our resources and business model. Because of this, we have already rebalanced our BTE and ATE portfolios and are able to actively seek new business from a variety of sources in both BTE and ATE sectors.

On the face of it, this is a complicated recipe with which to progress our second decade in the UK. However, nothing has changed in our philosophy of opening the doors to justice for everyone, whatever their financial status. The consistent accolades at awards ceremonies confirm our belief in the highest standards throughout the organisation: our by-words remain innovation, flexibility and service.

Elsewhere in this issue of the RAG we have a lot to say about the Insurance Distribution Directive, BTE developments and the need for employers to reconsider their commercial policies (CLP) now that employment tribunal fees have been scrapped. CLP has proved an enormous growth area, along with assistance services, and we aim to keep all BTE products affordable whilst providing top level cover and service. ARAG will meet the challenges of the market with solutions that benefit all our partners and policyholders.

Upcoming test cases will untangle some of the current impasse over clinical negligence settlements and we will ease some of the current solicitor ‘malaise’ through a new advanced disbursement product, aiding their cash flow.

Housing disrepair continues its strong growth and we are looking to more debt recovery and professional negligence for matrimonial business. Closer ties with solicitors through the pre-paid disbursement product will help introduce ARAG as the ideal partner for employers’ liability and motor business too. We already have our Practice Policy that covers all ATE cases in a firm.

I am pleased to say that we shall continue pursuing clinical negligence claims at the current level. And aft er the hysteria over discount rates earlier this year, insurers and government are getting closer to a more balanced view with a final figure that looks like it will be fairer to claimants.

What’s next in ATE?

Commercial ATE gets underwriting boost.
A dedicated new underwriting team, a clear emphasis on service standards and a host of fresh ideas to assist major legal firms in adjusting to a changing yet well-established market sector, ARAG is well placed to challenge in the commercial ATE sector.

With a clear focus on new business opportunities in the range of £100,000 to £500,000 indemnity limits. ARAG has committed the resources to deliver a first class service in this competitive marketplace. Underpinning the push for growth is the development of products under the Recourse umbrella. As always, the underwriting team is happy to discuss bespoke options to tailor cover to the needs of both the legal practice and to the specific type of case. The objective is to make ARAG a first, and automatic, choice of insurer partner.

Increasing activities in this sector is part of the company’s plan to accelerate its GWP in this area of the market. With further proposed legislation changes on the horizon, legal practices are similarly taking a new look at how they will affect their businesses over the coming years. The ARAG team is poised to respond. There are currently two distinct core policy types: Recourse Complete is the well-known policy for personal injury claims – accidents at work, slips & trips, clinical negligence, industrial diseases and RTAs. It is Recourse Options, designed for non-injury cases such as commercial and personal contract disputes, that is causing the latest interest. This also covers professional negligence, wills & probate, as well as insolvency claims.

Housing disrepair
Whilst some firms may not fully diversify into commercial claims, they are likely to be looking at the areas such as housing disrepair. Since the boom in buy-to-let investment, there has been a startling increase in the number of ‘rogue’ landlords who are not looking after either their properties or their tenants. Having seen the shortage of rental properties and very little enforcement of regulatory requirements, these landlords have been ignoring ‘due care’ and putting tenants into substandard accommodation, then failing to carry out even the most basic repairs such as dealing with damp. Often, it will be tenants housed by local councils; people who have very little in the way of funds or legal expertise who are left  to pursue claims without help. There has been a substantial amount of litigation already, and it is growing all the time.