After the event insurance has been used by many individuals and organisations over the years and as such has played an integral role in the UK’s justice system.
The fact is, pursuing litigation costs money and sometimes individuals and often even corporate entities lack the necessary resources to either defend or pursue legal proceedings in a cost-effective manner.
In such cases, ATE insurance can make a huge difference. Indeed, one case to have been in the news very recently involves war veterans who are claiming that they suffered physical ill-effects because of their role in atomic testing that took place in the Pacific and Australia in the 1950s.
Last year, the case took a negative turn when nine out of ten test cases were refused trial following an appeal by the Ministry of Defence. However, in July, the Supreme Court gave the veterans permission to appeal this. The Supreme Court hearing starts today.
Without After The Event insurance, this case may not have been brought at all. Because the plight of the ex servicemen strikes such a cord with the public, it is a great representation of the value of this form of protection against litigation costs.
However, the Ministry of Justice has announced proposals to eradicate CFA success fees and ATE premium recoverability arrangements.
Of course, these agreements remain available and the industry will naturally adapt to the new regime. At TheJudge we are experts in the field and have experience in both recoverable and non-recoverable jurisdictions. So, if you believe your clients could benefit from these types of risk transfer products, get in touch and speak to our expert team.