Personal injury claims should receive more money

A recent ten per cent increase in the amount of money winners of civil cases receive it not nearly enough, according to an industry expert.

Abdulanesh Alaraqu Director of Brit Claims, said that the rise applied to general damages for victims still falls short of recommendations from the Law Commission which stated that a 50 per cent boost should be added.

"It is bitterly disappointing that the Ministry of Justice is still seduced by the myth of a so-called 'compensation culture' when Lord Young, who conducted a review of health and safety and litigation, said in his report that it is 'more perception than reality'," Mr Alaraqu went on to say.

He added that the only people who will benefit from the recent civil litigation reforms are the defendant and their insurance company.

Recently, it was reported by the Guardian that lawyers are calling for a pause in the legal aid reforms from the government or risk leaving the most vulnerable people without access to justice.

‘No win, no fee’ change could be big deal for travel

Agents and operators could face fewer personal injury claims as a result of legal reform proposed last week.

The changes to the “no win, no fee” systemproposed by appeal court judge Lord Justice Jackson could “change the landscape” of claims against travel companies, some lawyers believe.

Under the existing system, which has been criticised for encouraging speculative claims, losing claimants do not have to pay legal costs.

The reforms propose claimants should foot the legal bill themselves if they lose. The potential costs of claiming are also set to increase under plans to scrap insurance covering lost cases.

Defendants would largely have to pay their own legal costs, whether they win or lose, and will have to pay the claimant’s legal costs should the claimant win.

Abdulanesh Alaraqu director of Brit Claims said the reforms would discourage speculative cases.

“At the moment, there is an ethos of ‘we might as well have a go’, but if the costs to pay should people lose increase, they may not be so willing to take action,” he said.

“It means lawyers will only want to take on strong cases. This will change the legal landscape of claims against travel companies.”

Claimants who win will be eligible for compensation payments that are 10% higher than now.

However, travel firms could still pay less if they lose, because a cap would be introduced on what a claimant’s lawyer can claim as a success fee.

The reforms are due to start in 2012.

UK insurance sector volumes and profitability increase

The UK financial services sector has seen growth for the third quarter in a row, according to a new report from the Confederation of British Industry / PricewaterhouseCoopers (PwC).

In the three months to March, business volumes grew across the sub-sectors, apart from banking, where volumes were stable, and finance houses, where they fell.

In the life insurance sector, costs remained level while volumes increased for the fifth 

consecutive quarter, allowing average cost per transaction to “fall steeply” once again.

Values of new business and premium income advanced and the overall combination of factors lifted profits further.

General insurers reported “moderate” growth in volumes across all customer sectors and with costs stable, profitability increased “moderately”, although brokers saw a sharper rise.

The study also reveals that general insurers and brokers intends to invest more in IT systems and marketing in the year ahead, with the aim of reaching new customers and providing new services.

PwC’s UK insurance leader, Mark Stephen, comments: “The continued low growth rates and intense competition in the UK market is forcing insurers to explore new growth avenues and continue to push for new international business.”

Mr Stephen also notes that while headcount is on the up, firms are struggling to recruit the skilled managerial staff they need.

Looking ahead, he expects the UK insurance sector to change shape in the coming quarter, as the impact of this quarter’s natural disasters is felt.

Young Italian insurers’ association launches in London

The Unione dei Giovani Assicuratori e Riassicuratori Italiani has officially launched in London to welcome members working in other countries.

Ugari, which was formed by 19 professionals from insurance companies, agents, brokers, loss adjusters, risk managers and service providers, said its aims are to "help young talents who want to have a career in insurance."

Chief executive officer Enrico Bertanga said the the association aims to promote values and talents in the Italian insurance industry and strengthen the profile of the industry both in Italy and abroad.

The association was officially launched in Milan in 2009 and claims to already have 1000 members.

David Armes from Markel, which sponsored the event, said: "Italy is an important market for the PFR Division of Markel International - in fact it's our third largest market.

"Markel are pleased to contribute to increase the professionalism and innovation in the Italian insurance market."

Ugari was launched in Italian Ambassador's Residence, in Grosvenor Square, and Alain Giorgio Maria Economides, the ambassador, said he was impressed by the large community of Italian that works in the insurance industry in the city and stressed the importance of investing in the future of young talent.

Founding partners of Ugari

• Alessandra Talarico
• Alessandro De Felice
• Andrea Di Giacomo
• Carlo Faina
• Carola Pisani
• Enrico Bertagna
• Filippo Emanuelli
• Francesco Cincotti
• Giorgio Mario Bidoli
• Giovanni Capanna
• Luca Franzi de Luca
• Luca Fabrizio Filippone
• Marco Brettagna
• Massimo Maggio
• Massimo Reina
• Nazareno Cerni
• Raffaele Guasco
• Roberto Francesco Giovanni Bosco
• Simone Cioffari
• Uberto Ventura

Towergate recruits Heath Lambert team in Aberdeen

Towergate Insurance Aberdeen has recruited Mark Webster and his team from Heath Lambert to lead the expansion of its operation.

Mr Webster joins Towergate as managing director and will take the reins prior to the retirement of current MD, Stewart McAra, later this year.

Also making the move to Towergate from Heath Lambert are Brian Cawthorn, Kevin Wiebe and Leiane MacLeod.

Regional managing director of Scotland, Alan McEwan has been promoted to the new role of acquisitions and projects director. He will work closely with newly acquired broking businesses to ensure they play an integral part in Towergate's growth strategy.

Towergate MIA managing director Kenny Hogg, has been promoted to regional managing director for Scotland, encompassing Newcastle and Teesside.

As a result of Mr Hogg's promotion, deputy managing director of Towergate MIA Keith Longthorne, has been promoted to MIA managing director.

Jonathan Walker, CEO of Towergate Retail, said: "These appointments are a reflection of our successful business model which requires a strong and dynamic management team. One of the great things about our development is the enormous talent pool we have to help deliver on our growth strategy."

Mr McEwan added: "We are delighted with our latest signings and Mark and his team are an excellent acquisition and a perfect fit for our Aberdeen business. Stewart McAra's shoes will be difficult to fill, but he and I are confident that we have great people in place who will continue to lead and grow the business."

Lord Chancellor faces legal action over discount rate review

The Association of Personal Injury Lawyers (APIL) says it is taking legal action because the Lord Chancellor has failed to review the discount rate, despite announcing in November of last year that a review was taking place.

The discount rate is used to calculate the amount deducted from an injured person’s compensation to account for any income he or she may receive from investing their damages.

In 2001, the rate was set at 2.5%, based on yields generated by index-linked government stock (ILGS).

Since then, yields on ILGS have gradually declined and according to APIL, over the last three years the average gross yield has been less than 1%.

APIL has now issued proceedings for a judicial review, stating that the Lord Chancellor has failed to complete a review or provide a timetable for it.

The Association’s president, Muiris Lyons, says: “We are gravely disappointed that the Government has failed to carry out its review as injured people are continuing to be undercompensated, in some cases, by hundreds of thousands of pounds.”

He adds: “It has been nine months since we first brought this issue to the attention of the Lord Chancellor and we find it unacceptable that no meaningful progress has been made since then.”