
Lowering justice costs

As part of my final contribution to Post last year, I was asked to single out my biggest hope for 2010. Ironically, my first contribution this year is published on the day when the focus of my 'hope', the Lord Justice Jackson civil justice review, becomes public.
Based on the intellectual rigour displayed by Lord Jackson, his independence and the all-embracing nature of the consultation process, I am hopeful that today's report will propose radical but workable solutions to deliver justice at proportionate costs.
As a P&C insurer with a legal protection business, Allianz is in a position to look at this issue from all sides including, very importantly, what is the most effective outcome from the consumers' perspective. We believe the emphasis should be on strengthening the before-the-event insurance offering for customers and we anticipate that Lord Jackson's proposals will provide the impetus for this.
We are also expecting the report to contain a range of recommendations relating to the future of after-the-event insurance, which will hopefully include the outlawing of referral fees. This will ultimately lower insurance premiums for consumers and we are ready and eager to adapt the Allianz business model accordingly.
One significant step forward is relatively simple: the use of computer software to value fast track cases up to £25 000 in order to eliminate the need for multiple agency involvement when settling straightforward injury claims. Employing software which uses financial parameters agreed by the judiciary for valuing standard injuries will provide clear benefits to injured parties including much needed simplicity, certainty, and a swifter settlement.
Ultimately, the objective of reforming the civil justice system has to be to get the right compensation to injured parties more swiftly and with lower frictional costs. This will require significant change in how personal injury claims are settled but we are hopeful that the review will provide the basis for achieving this.
Unfortunately, with a general election due within months, it is unlikely that any newly elected government will have an immediate appetite for implementing changes that require new legislation. However, significant improvements are possible within the existing framework and an immediate start should be made on implementing these. This will initiate a process of change which can be developed further once the required legislation is in place which could be as early as next year.
In this way, a civil justice system fit for purpose can be delivered to benefit claimants and policyholders alike.
Andrew Torrance, CEO, Allianz Insurance
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