In this episode of myths debunked = insurance premiums.
In 2013, we were told that Jackson LJ’s crusade against success fees and ATE premiums, we would all see our insurance premiums drop.
Today’s Gazette has an interesting story http://www.lawgazette.co.uk/practice/direct-line-takes-referral-fee-hit-but-profits-soar/5040063.article - the numbers are as follows = they lost £14m in referral fees, but profit went up by 70%.
And the reduction to premiums was 70% as well?!?!?! No it wasn’t. Premiums were reduced by 3%.
Expect more of the same in 2015, a fall in the legal cost spend, a huge rise in profits and a token single figure discount to insurance premiums.
This was the price of a fall in access to justice = slightly cheaper insurance premiums. A price not worth paying.