Allianz Legal Protection (ALP) has launched an innovative solution to support specialist personal injury and clinical negligence law firms. The new initiative allows law firms to receive an immediate benefit from ALP’s after the event insurance (ATE) policy, alleviating the cash flow burden that firms face due to disbursement expenditure.
Extensive research conducted by ALP highlighted the number one issue for a law firm is cash flow, with the amount invested with work in progress restricting growth ambition.
In recognition of the feedback received, ALP has launched its ‘paid as incurred’ model alongside its ATE insurance policy. This enables law firms to make an early claim for costs incurred on disbursements. If the case is subsequently successful then any claim payment made is then repaid once recovered along with the ATE insurance premium.
Unlike funding arrangements, a key feature of the ALP facility is that this is not a loan and not subject to interest or drawdown fees. Instead, it is simply paying disbursements as incurred rather than at case conclusion. This makes the model easier to explain to clients without the need and complexity of getting clients to enter into a consumer credit agreement.
Steve Rowley, business development manager, Allianz Legal Protection, commented: “We’ve always seen it as our role to support the law firm and their clients through the claim and litigation process. Paying disbursements as incurred was a natural evolution in our ATE product offering, especially as we’re starting to see law firms coming under increased cash flow pressure as a result of fixed costs and higher court fees.
“Being part of Allianz, we have the financial strength and technical expertise to help law firms reduce disbursement exposure on their balance sheet. This is not new insurance, just a different approach to working with specialist law firms that enables them to benefit and grow by releasing cash otherwise tied up in their work in progress. In an evolving market, we continue to be at the forefront of delivering innovative, profitable and sustainable ATE solutions for solicitors and specialist brokers.”
Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz SE Group, the largest property and casualty insurer worldwide.
Around 85 million private and corporate customers rely on Allianz's knowledge, global reach, capital strength and solidity to help them make the most of financial opportunities and to avoid and safeguard themselves against risks.
In 2015, over 142,000 employees in more than 70 countries achieved total revenues of approximately 125.2bn euros.