Recoverability of ATE premiums

Drawing attention to ‘a far greater underlying problem’ than premiums Judge Peter Hurst cited the ratio of costs to compensation in simple claims for modest damages. This in deciding issues within 20 Claims Direct test cases out of many thousands dependant on the decision on the recoverability of after-the-event (ATE) premiums. While some details of recoverability were spelt out in relation to these cases the ‘underlying problem’ remains and, unless addressed by equitable discussion and agreement within the insurance market, associated legal costs will continue to soar.