Market Information

The first before the event legal protection policy hit the UK market in 1975, and following the changes to Legal Aid in 1999 the after the event market was created. Over the year’s legal protection insurance has developed in many forms, one of the main differences being how it’s sold.

Before the Event (BTE)

Before the event is usually sold as an add on to a motor or household product, and covers the consequence of an event that has not occurred yet. Recent years have seen the market becoming very competitive as more companies see the benefit of legal expenses. Other changes have included the market being regulated by the Financial Services Authority.

Over the next year several issues will impact on the BTE market, including the deregulation of the provision of legal services.

After the Event (ATE)

After the event insurance provides cover for a specified legal claim after the disputed event has happened. It protects the policy holder from the risk of having to pay for their opponents legal costs in that dispute.

The sector has regained much needed stability in recent years following several high profile corporate exits. The market has gone on to experience strong growth, which is now showing signs of slowing.

Over the coming year the market will be adjusting to implications of the Compensation Bill, the Legal Services Bill, and a potential rise in the small claims court limit.