THE EFFECT OF NON-FSA APPROVED FIRMS OFFERING INDEMNITY

A recent Court of Appeal ruling on a non-FSA authorised solicitor which offered a conditional fee agreement without legal expenses could see insurers working with law firms to develop self-insured structures but there need to be real focus on the issue of capital adequacy according to Arc Legal.

Speaking to Post Magazine, Richard Finan said that despite concerns from some legal expenses insurers, the ruling could create opportunities for insurers to work with law firms to create captive insurance companies. However, the capital adequacy of such arrangements would need to be closely scrutinised to ensure they were suitable for purpose.

The full article can be found on the Post Magazine website at www.postonline.co.uk.