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‘DIVORCE INSURANCE’ AND THE LEGAL EXPENSES MARKET – A MATCH MADE IN HEAVEN?

Reforms being considered by the Law Commission could make pre-nuptial agreements legally binding. Will this lead to the growth of a new insurance product to cover the legal costs in the event of divorce?

Richard Finan of Arc Legal believes that while there is the potential to provide such a product, take-up could be limited making it difficult to integrate into exisiting family legal expenses products. There is also the issue of adverse selection resulting in unfavourable underwriting terms and so high premiums.

Richard Finan was speaking to Post Magazine for an article published on the 11th January 2011. The full article can be found at www.postonline.co.uk.

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