r e p o r t - legal expenses insuranceriad-online.eu/fileadmin/documents/homepage/news_and...riad -...

1 2

A N N U A L R E P O R T 2 0 0 6 - 2 0 0 7

R E P O R T2 0 0 8 - 2 0 0 9

International Association of Legal Expenses Insurance

RIAD - Report 2008-2009

1

I. RIAD ISSUES.........................................................................................................................................3

1.. Welcome.from.Brussels.......................................................................................................................3

2.. RIAD.in.2008.and.2009.....................................................................................................................4

3.. The.European.Court.of.Justice’s.ruling.on.the.free.choice.of.lawyer......................................................5

4.. Improving.access.to.law.-.The.study.of.SEO.Economic.Research...........................................................6

5.. 20th.RIAD.Congress.-.Flashpoint.between.the.consumer.interest.and.regulated.access.to.law..............8

6.. The.Lawyer’s.Viewpoint.-.Interview.with.Hans.Smeyers......................................................................10

7.. RIAD.Workshop.–.Legal.protection.insurers.strive.to.improve.their.services........................................12

8.. RIAD.Seminar.–.“Fresh.Perspectives:.the.Key.to.New.Growth”..........................................................13

9.. European.Topics...............................................................................................................................14Collective.Redress..........................................................................................................................................14Principles.of.European.insurance.contract.law................................................................................................14Compensation.of.cross-border.traffic.accident.victims.and.‘Rome.II’................................................................15The.Mediation.Directive.................................................................................................................................16ADR.for.financial.services...............................................................................................................................16VAT.on.insurance.premiums...........................................................................................................................17Renewal.of.the.Insurance.Block.Exemption.Regulation....................................................................................17Insurance.Guarantee.Schemes........................................................................................................................18Equal.Treatment.Directive...............................................................................................................................18Which.court.is.competent.in.the.Internal.Market?.–.‘Brussels.I’.......................................................................19Which.law.applies.to.a.contract?.-.‘Rome.I’....................................................................................................19Future.EU.cooperation.in.judicial.matters.-.The.Stockholm.Programme............................................................19

10.. National.level.developments...........................................................................................................20Discussions.in.Italy.about.reforms.of.the.legal.profession................................................................................20Redrafting.insurance.contract.law.in.Switzerland............................................................................................21Legal.protection.in.France..............................................................................................................................21Civil.Justice.in.England.and.Wales.–.Report.of.Lord.Justice.Jackson.................................................................23A.new.approach.to.insurance.contracts.in.the.Netherlands.-.Informed.renewal.and.contract.periods...............25

11.. RIAD.Members.and.Associate.Members..........................................................................................27

12.. Who’s.Who?...................................................................................................................................30

II. ANNEXES...........................................................................................................................................31Solvency.II.Directive.–.Transposition.of.legal.expenses.insurance.provisions............................................31Overview.of.RIAD.Positions...................................................................................................................31

Table of contents


2

RIAD.is.the.International.Association.of.Legal.Expenses.Insurers..Founded.in.1969.as.“Rencontres.Internationales.des.Assureurs.Défense,”.RIAD.is.an.independent.organisation.which.represents.and.promotes.the.interests.of.specialists.in. legal.protection. insurance..Since. its. foundation. the.Association.has.grown.and. today. represents.more. than.60.undertakings.from.16.European.countries,.Canada,.South.Africa.and.Australia..

Legal.protection.insurers.help.clients.to.defend.their.individual.legal.rights.by.providing.the.necessary.resources.to.access.high.quality. legal.advice.and. services..RIAD.members.also.effectively. shield. customers. from.financial. risks.associated.with.accessing.the.justice.system..Insurers’.specialised.services.include.representation.of.insured.persons,.both.in.court.and.out-of-court,.and.bearing.the.costs.of.legal.proceeding..RIAD.members.generate.premium.income.of.over.€2.65bn.and.as.facilitators.of.access.to.law.and.justice.contribute.to.the.welfare.of.their.clients.

http://www.riad-online.eu

RIAD MEMBERS’ LOCATION


3

I. RIAD ISSUES

1. Welcome from Brussels

It. is. four. years. since. RIAD. moved. its.headquarters.to.Brussels.in.order.to.fully.integrate. the. legal. protection. insurance.industry. into. the. European. political.landscape..This. is. the. second.edition.of.our.biennial. report. since.moving. to. the.heart.of.the.EU,.and.like.its.predecessor,.this. publication. provides. information.

about. ongoing. policy. issues. which. are. of. relevance.to. RIAD. members..The. RIAD. Report. 2008–2009. also.introduces,. for. the. first. time,. a. presentation. of. the.European.legal.protection.insurance.market..RIAD.has.undertaken. this. comprehensive. and. unique. analysis.and.we.are.very.proud.to.present.the.results.publicly,.as.a.central.feature.of.this.report..

The.RIAD.Report.2008-2009.covers.two.eventful.years:.it.has.been.a.period.of.time.which.has.raised.a.lot.of.issues. for. insurers. in. general. and. for. legal. protection.insurers. in. particular,. not. least. the. incredible. turmoil.caused.by.the.global.financial.crisis...

From.a.European.perspective,.a.major.event.took.place.on. 1. December. 2009,. when. the. Lisbon.Treaty. finally.came.into.force.after.years.of.debate.and.uncertainty..The. Treaty. is. meant. to. facilitate. decision-making. in.the.EU.and.make. the. functioning.of. the.system.more.effective.and.democratic..

In.June.2009.European.Parliament.elections.were.held..The.Parliament,.which.is.the.only.directly.elected.body.in. the. EU,. has. a. considerable. and. growing. influence.on. the. lives. of. the. EU’s. almost. 500. million. citizens..Members.are.there.to.represent.citizens,.as.legislation.is.debated,.amended,.and.either.rejected.or.approved..The.European.People’s.Party.(Christian.Democrats).emerged.as.the.strongest.political.grouping.with.36%.of.the.736.seats,.followed.by.the.Group.of.the.Progressive.Alliance.of.Socialists.and.Democrats.with.25%..

Insurers.had.been.awaiting. the.finalisation.of. the.so-called. Solvency. II. Directive,. which. is. set. to. introduce.economic.risk-based.solvency.requirements.for.insurers.

across. Europe. for. the. first. time.. Political. agreement.was. reached. on. 17. December. 2009. and. the. new.framework. Directive,. which. also. repeals. the. legal.expenses. insurance. Directive. 87/344/EC,. is. scheduled.to.apply.as.of.1.November.2012..In.the.annex.to.this.report.we.present.an.overview.of.how.the.provisions.of.Directive.87/344/EC.have.been.translated.into.the.new.‘insurance.rule.book’.

For. legal. protection. insurers,. the. most. pressing. issue.has.without.doubt.been.the.European.Court.of.Justice’s.ruling.on.the.right.to.the.free.choice.of.lawyer:.for.the.first. time. the. Court. had. to. juxtapose. and. define. the.scope. of. the. insurer’s. power. to. manage. and. handle.a. claim. against. the. insured. person’s. right. to. choose.his. lawyer.as.granted.by.the.legal.expenses.insurance.Directive.. RIAD. Members. welcome. the. fact. that. the.Court’s. decision. comprehensively. outlines. how. to.apply. the. relevant. provisions. of. the. Directive..At. the.same. time,. the. impact. of. this. judgment. might. force.many.insurers.to.reduce.the.scope.of.their.cover.to.the.detriment.of.their.clients.

Last.but.not.least,.we.wish.to.emphasise.the.sensitivity.of.legal.protection.insurers.to.new.customer.trends..Our.workshop.held. in. June. 2009. facilitated. greater.understanding. of. consumer. concerns.and. identified. how. RIAD. members.can. continue. to. improve. their. service.offering.to.clients..

From. customer-focused. discussions. through. to.the. ongoing. dialogue. about. the. application. of. the.legal. expenses. insurance. Directive. and. the. other.outstanding. regulatory. initiatives,.RIAD.members. face.many.challenges,.however.as.this.report.indicates,.our.experience.over. the.past. two.years. suggests. that.our.industry.is.well.placed.to.tackle.them.in.a.constructive.and.positive.way.

Paul.Asplin.-.RIAD.President

Antje.Fedderke.-.RIAD.Secretary.General


4

2. RIAD in 2008 and 2009

RIAD.has.undergone.some.significant.internal.changes.whilst. remaining. an. active. catalyst. for. debate. and.providing.a.focal.point.for.the.European.legal.protection.insurance. industry. to.dialogue.with. representatives.of.the. European. institutions,. politicians,. supervisors. and.other.stakeholders.

RIAD. commissioned. SEO. Economic. Research,. an.independent. research. institute. connected. with. the.University. of. Amsterdam,. to. conduct. a. comparative.study. on. the. economic. consequence. of. the. legal.systems. currently. in. operation. in. Europe.. The. report.“Regulation.of.the.legal.profession.and.access.to.law”.was.published.in.June.2008.and.a.press.conference.was.held.in.Brussels..The.report.supports.RIAD’s.hypothesis.that. the. abolition. of. superfluous. and. burdensome.regulation.would.most. likely. contribute. to. the.overall.welfare.of.European.citizens.by.enhancing.access.to.law..It.was.found.that.higher.degrees.of.regulation.prevent.competition. and. reduce. the. ability. of. consumers. to.choose.from.different.providers.of.legal.services..RIAD.intends. this. study. to. act. as. a. stimulus. for. informed.debate.about.the.regulation.of.the.legal.markets.in.the.EU..It.represents.the.beginning.of.a.conversation.which.will.occupy.members.for.some.time.to.come..The.SEO.study.also.formed.the.centrepiece.of.the.RIAD.Congress.2008.in.Munich,.which.saw.more.than.150.participants.–. lawyers,. insurers,. consumers,. legislators,. supervisors.–. strongly. debate. the. inconsistencies. between. the.consumer.interest.and.the.way.in.which.legal.services.are.currently.regulated.

Another.highlight.was.the.June.2009.workshop,.held.in.Brussels,.themed.on.how.legal.protection.insurers.can.serve.their.customers.better..A.very.positive.signal.from.the.event.was.that.all.participants.agreed.on.the.value.of. legal. protection. insurance. in. facilitating. access. to.justice.and.that.more.effort.should.be.put.into.ensuring.greater.recognition.and.acknowledgement.of.its.merits..A.core.message.was.that.a.trust.mark.is.neither.the.only.nor.the.most.effective.way.to.meet.customers’.needs.and.enhance.trust.in.legal.protection.insurance..The.Director.

General. of. the. European. Consumers’. association. and.representatives. of. the. European. Commission. were.amongst.those.attending.the.workshop.

Without. question,. RIAD’s. Seminar. 2009. was. one. of.the. most. outstanding. events. in. the. organisation’s.history..The.extraordinarily. innovative.approach. to. the.theme. of. the. event,. “Fresh. perspectives:. the. key. to.new.growth,”.coupled.with.the.hospitality.of.our.South.African.member.and.the.marvellous.setting.of.Sun.City,.made.it.a.truly.memorable.experience.for.all.delegates..Participants. interactively. developed. their. ideas. within.small.groups.and.were.introduced.to.new.tools.which.can.help.their.organisations.move.into.untapped.market.space.-.create.new.markets.is.a.talent.greatly.needed.during.the.current.financial.crisis..

Within.the.Association,.the.key.development.has.been.the.election.of.Paul.Asplin.as.RIAD.President.and.Enrique.Ayuso.as.RIAD.Vice-President. in.November.2009..The.new.leadership.have.a.strong.background.in.insurance.and.have.been.active.members.of.the.RIAD.Board.over.the.past.few.years..RIAD.members.also.decided.to.modify.the.statutes. so.as. to.open.membership. to.companies.that.are.en.route.to.becoming.full.RIAD.Members..Two.undertakings,.one.from.Australia.and.one.from.Canada,.have.since.been.admitted.as.Associate.Members.


5

3. The European Court of Justice’s ruling on the free choice of lawyer

In.September.2009.the.European.Court.of.Justice.(ECJ).ruled.that.the.Austrian.legal.expenses.insurers’.practice.of. selecting. the. lawyers. to. represent. their. clients. in.collective. redress. proceedings. was. an. inadmissible.limitation. of. the. insured’s. right. to. freely. choose. his.lawyer.and.thus.not.compatible.with.Article.4.(1).(a).of.Directive.87/344/EEC1.

The. case. (C-199/08. Eschig). concerned. the. so-called.‘mass.claims.clause’.used.by.Austrian.legal.protection.insurers.. In. Austria,. as. in. other. EU. countries,. legal.protection. insurers. had. sought. to. combine. the. legal.representation. of. their. clients’. interests.. The. mass.claims.clause.allowed.insurers.to.select.the.legal.team.when.several.insured.parties.in.similar.situations.wished.to. pursue. claims. against. the. same. opposing. party..These. procedures. can. become. gigantic. because. the.expectations. and. interests. of. sometimes. hundreds. of.consumers.must.be.managed.and.bundled..By.selecting.specialised. lawyers,. insurers. were. able. to. optimise.the. professional. competence. to. best. defend. their.customers’.interests.and.manage.their.costs.efficiently..

The.ECJ. ruled. that.where. recourse. is.had. to.a. lawyer.Article.4.(1).(a).grants.the.insured.person.the.right.to.choose.his. lawyer..This. right. does.not. depend.on. the.occurrence. of. a. conflict. of. interest,. has. an.obligatory.nature. and. must. generally. be. applied.. Likewise,. the.Court. established. that. the. Article. has. a. restricted.application. and. only. provides. for. the. right. to. freely.choose.a. lawyer.where.an. inquiry.or.proceedings.are.initiated.

To.sum.up,.it.follows.from.the.Directive.and.the.Court’s.ruling. that. there. are. three. cases. which. have. to. be.distinguished.in.regard.of.the.free.choice.of.lawyer:•. as.a.contractual.measure.according.to.Article.3. (2).

(c).of.the.Directive;.•. where. recourse. is.had. to.a. lawyer.or.other.person.

appropriately. qualified. according. to. national. law.once.an.inquiry.or.proceedings.are.initiated.according.

to.Article.4.(1).(a);.and•. whenever. a. conflict. of. interest. arises. between. the.

insured.person.and.his.insurer.according.to.Article.4.(1).(b).because.the.same.insurer.handles.both.sides.of.a.claim.

Moreover,. the. ECJ. underlined. that. the. Directive.preliminarily.aims.at.precluding.any.conflict.of.interest.arising.when.the.insurer.is.covering.a.person.in.respect.of.both.legal.expenses.and.other.classes,. in.particular.liability. insurance,.or. is.covering.opposing.parties. in.a.dispute..

Article. 3. (2). of. the. Directive. lists. organisational. and.contractual.options.which.insurers.can.choose.to.avoid.conflicts. of. interest:. they. can. employ. separate. staff.within. their. companies. to. manage. claims. (Article. 3.(2). (a)),. they.can.subcontract. the.management.of. the.claims. to.a. legally. separate.undertaking. (Article.3. (2).(b)),.and,.according.to.Article.3.(2).(c),.they.can.decide.to. grant. the. insured. person. the. contractual. right. to.choose.his.representative.as.soon.as.an.insured.claim.is.made..The.cost.of.engaging.‘free.choice’.lawyers.from.the. very. beginning. of. each. case. is. prohibitive. and. in.practice. insurers. do. not. choose. this. option..The. SEO.Economic. Research. study,. commissioned. by. RIAD. in.2008,.found.that.costs.incurred.by.the.appointment.of.such.‘free.choice’.lawyers.are.3-to-6.times.higher.than.using.in-house.or.panel.lawyers..

The. industry. welcomes. the. fact. that. the. judgment.brings. about. more. legal. certainty. for. insurers. and.their.customers,.as.it.provides.an.interpretation.of.the.Directive.as.it.applies.to.the.choice.of.lawyer..However,.the.adaptation.necessitated.by.the.ECJ.ruling.may.have.an. adverse. effect. on. consumers,. as. insurers. may. be.forced.to.reduce.the.scope.of.coverage.

1 Directive 87/344/

EEC of 22 June 1987

on the coordination of

laws, regulations and

administrative provisions

relating to legal expenses

insurance.


6

4. Improving access to law - The study of SEO Economic Research

In.attempting. to.safeguard. legal.security. for.all. those.seeking.justice.most.European.governments.have.given.certain.exclusive.privileges. to. lawyers..Although.much.of. the. ensuing. regulation. and. self-regulation. aims. to.protect.professional.quality,.it.also.undeniably.restricts.competition..

RIAD.has.been.at.the.forefront.of.efforts.to.initiate.an.informed.policy.debate.regarding.the.regulation.of.the.legal.profession..Since.commissioning.a.groundbreaking.study. by. SEO. Economic. Research2. which. analysed.the.effects.of.the.rules.governing.the. legal.profession.from.an.economic.perspective,.RIAD.has.been.actively.working.to.move.this.issue.up.the.political.agenda.When. SEO. Economic. Research. published. the. results.of. their. pan-European. study. in. June. 2008,. the.findings. were. clear:. stringent. levels. of. regulation. are.not. necessary. to. achieve. sufficient. access. to. law.. In.analysing. the. diverse. approaches. taken. to. regulating.the.legal.profession.in.Europe,.the.study.revealed.clear.societal.costs.whereas.the.benefits.of.strict.regulation.were.less.clear..

Indeed. some. over-regulated. markets. appear. to. be.designed. to. propagate. the. interests. of. the. legal.profession.rather.than.prioritise.the.public.interest.and.promote. general. access. to. law.. The. consequence. of.this.imbalance.is.that.the.prices.paid.for.legal.services.are.too.high.and.the.net.effect.of.the.regulation.is.to.decrease. access. to. law. –. effectively. undermining. the.stated.policy.objectives.of.European.governments.

To. put. this. in. perspective,. the. report. provides. an.estimate. of. the. cost. of. the. regulation. of. lawyers. via.a. comparative. analysis. of. the. costs. incurred. by. legal.expenses. insurers. when:. outsourcing. a. case. to. an.external. lawyer;. treating. the. case. in-house. with. an.internal.lawyer.or.non-lawyer.legal.expert;.and.working.with.a.so.called.‘network.lawyer’.–.i.e..an.external.law.firm. who. is. a. preferred. supplier. of. a. legal. expenses.insurer.. On. average,. a. network. lawyer. costs. two-to-three.times.more.than.an.insurer’s.jurist.(paralegal).or.salaried.lawyer,.while.an.external.lawyer.costs.four-to-six.times.as.much.

The.SEO.report.addresses.a.range.of.pertinent.questions,.including.is.it.really.necessary.to.have.a.monopoly.for.lawyers;. why. isn’t. it. possible. to. become. a. lawyer. in.the.employment.of.a.non-lawyer;.and.is.fee.regulation.really.necessary?

The.strong.and. robust.findings.have.allowed.RIAD. to.initiate.policy.discussions.with.regulators,.legal.experts,.economists.and.other.stakeholders..Too.often.regulators.simply.assume.that.the.social.benefits.of.regulation.are.higher. than. the. social. costs..This. complacency. needs.to. be. challenged. and. RIAD. is. calling. for. an. open.discussion.on.the.costs.and.benefits.of.the.regulation.of. the. legal. profession..There. are. diverse. approaches.taken.to.guaranteeing.access.to.justice.within.the.EU..Some.markets.are.heavily.regulated.while.others.have.far.more.liberal.regimes..However,.there.is.no.significant.difference.in.citizens’.access.to.law.

2 SEO Economic Research

carries out independent

applied economic

research on behalf of the

government and the private

sector. SEO Economic

Research is connected

with the University

of Amsterdam, which

provides the organisation

with invaluable insight

into the newest scientific

methods. Operating on a

not-for-profit basis, SEO

continually invests in the

intellectual capital of

its staff by encouraging

active career planning,

publication of scientific

work and participation in

scientific networks and in

international conferences.


7

From.an.economic.perspective,.there.seems.much.to.gain.for.society.by.opening.up.the.national.legal.markets..The.results.of. the.study. indicate. that. liberalising. the. legal.profession.to.allow.certified.(non-lawyer).legal.experts.play. a. greater. role.may.have. a. substantial. impact. by.lowering.prices..Therefore,.competition.from.non-lawyer.legal. experts. may. benefit. consumers. whereas. current.levels.of.regulation.restrict.such.external.competition.

In. many. countries,. concerns. regarding. the. potential.effect.of.rising.lawyers’.expenses.on.access.to.law.have.led.to.special.governmental.committees.to.investigate.the. regulation. of. lawyers.. An. OECD. report. on. the.

regulation. of. 25. markets. for. legal. services. concluded.that. part. of. the. regulation. of. the. legal. professions,.including.self-regulation,.is.based.on.“rent-seeking.and.achieves.cartel-like.effects”..

Procedural.law.is.clearly.a.very.complicated.matter.and.the.need.for.regulation.to.ensure.adequately.qualified.legal. representatives. is. not. in. doubt..The. SEO. report.concludes,. however,. that. the. need. to. regulate. is. less.significant. than. typically. assumed. by. government.agencies. and. the. legal. profession.. For. example,. the.research. shows. that. compulsory. representation. in.court. is. probably. necessary. but. that. the. easing. of.the. monopoly. on. representation. currently. enjoyed. by.lawyers,. to. include. jurists. from. other. legal. counsels,.would. greatly. benefit. the. consumer. by. promoting.freedom.of.choice..

Knowing.that.the. introduction.of.competition.to. legal.services. will. reduce. the. cost. of. access. to. law,. the.major. policy. challenge. is. to. identify. and. remove. the.restrictions.which.are.unnecessary.or.disproportionate.to. achieve. public. interest. goals. and. RIAD. is. actively.involved.in.driving.this.policy.debate.forward..


8

5. 20th RIAD Congress - Flashpoint between the consumer interest and regulated access to law

The. RIAD. Congress,. held. in. Munich. in. September.2008,.gathered.not.only. legal.expenses. insurers. from.Europe,. Canada. and. South.Africa,. but. also. consumer.representatives,. lawyers,. academics,. policymakers. and.legislators.

More. than. 150. delegates. participated. in. the. event,.the. centrepiece. of. which. was. a. robust. debate. which.concluded.that.a.heavily.regulated.legal.services.market.is. not.optimal. for. the.public. interest. and. that. further.reforms.are.necessary..

The.starting.point.for.the.engaged.discussion.was.the.study. by. SEO. Economic. Research,. an. independent.research. institute. with. the. University. of. Amsterdam,.

which. analysed. the. effect. regulation. of. the. legal.profession.has.on.access.to.justice.across.Europe...

“We. found. overregulation. in. numerous. European.countries.which.is.not.in.the.interest.of.the.consumer,”.said.Dr..Barbara.Baarsma,.Deputy.Director.of.SEO.and.author.of.the.study..Differences.within.European.legal.systems. reveal. that. tighter. regulation. leads. to. higher.costs. for. consumers. but. does. not. guarantee. greater.access.to.law.nor.higher.standards.of.service..

«According. to. our. research,. there. is. no. proof. that.lawyers. in. strictly. regulated. countries. supply. better.services. than. legal. experts. who. are. not. lawyers..Although. it. is. certainly. true. that. lawyers. cost. more.than. non-lawyers,». added. Dr.. Baarsma.. Liberalisation.of. the. legal.profession.could.allow.qualified. jurists. to.supplement. the. services. provided. by. lawyers. without.lowering. the.standards.of. service.. It.means. that. legal.expenses. insurers. could. use. in-house,. qualified. legal.advisors.instead.of.the.current.situation.where.insurers.are.normally.obliged.to.hire.additional.external.lawyers,.which.ultimately. leads.to.significantly.higher.costs.for.society,.i.e..both.for.the.insurer.and.for.the.individuals.seeking.access.to.justice...All.too.often.a.highly.regulated.legal.services.market.is.associated.with.high.court. fees.which.prevent.people.from.taking.their.cases.to.court..Such.regulation.thwarts.innovation. and. restricts. the. choice. of. consumers.regarding.legal.advice..As.access.to.law.should.not.be.dependent.on.access.to.money,.Dr..Baarsma.requested.national. regulators. to. review. their. existing. regulatory.systems..

Dr..Peter.Kolba.who. is.Head.of. the.Legal.Department.of. the. Consumer. Information. Association. of. Austria,.agreed. that. the. prohibitive. costs. of. proceedings.are. mostly. the. reason. for. deterring. consumers. from.pursuing.their.claims..For.him.legal.protection.insurance.offers.an.important.solution.and.he.urged.legislators.to.employ.regulation.in.a.way.so.to.reduce.litigation.costs.Professor.Dr..Barbara.Grunewald,.from.the.University.of.Cologne,.saw.no.conflict.of. interest. in. legal.expenses.insurers. providing. legal. advice. to. their. clients. as,.


9

“consumer.protection.is.guaranteed.because.of.existing.competition. between. insurance. companies.”. She.advocated. more. choice. for. the. legal. services. market.and. a. restriction. of. the. lawyers’. monopoly. on. giving.legal.advice.

In. calling. for. liberalisation. to. move. forward,. Finland.was.noted.as.a.successful.example.of.how.to.liberalise.the.legal.services.market..The.Finnish.legal.system,.with.annual.expenditure.of.about.€47.per.inhabitant,.ranks.among. the. least.costly. in.Europe.–.only.England.and.Wales.spend.even.less.(€23)..Germany,.with.nearly.€97,.is.among.the.most.expensive..

A. liberalised. system. requires. all. players. to. behave.responsibly..In.Finland.it.is.not.the.state.but.rather.the.self-regulation.of.the.legal.protection.insurance.sector.which. insists.upon. the.use.of. legally-trained.advisors..By. avoiding. a. sledgehammer. approach. and. instead.adopting. a. more. appropriate. level. of. regulation,. the.quality.of.legal.advice.is.protected.while.the.threshold.for. those. seeking. legal. advice. is. simultaneously.lowered..The.result.is.enhanced.societal.access.to.law.–.which.is.exactly.what.regulation.is.intended.to.promote..Regulation.of.the.legal.profession.should.not.be.an.aim.in. itself. –. it. should. simply. serve. to. facilitate. greater.access.to.law..

The.SEO.study.revealed.that.depending.on.the.country,.engaging.an.external.lawyer.can.cost.four-to-six.times.

as. much. as. having. the. case. dealt. with. by. the. legal.protection. insurance. company’s. jurists.. Nevertheless,.in.Europe,.severe.restrictions.are.often.placed.on.legal.protection. insurance. companies. denying. them. from.offering.legal.advice.or.from.representing.their.clients.in.court..Indeed. in.France,. Frédéric.Baccelli,.Managing.Director.of.Protexia.in.Paris,.reported.that.changes.to.the.French.legal. system. had. meant. increased. regulation. of. the.legal.profession,.additional.monopolies.and.that,.“legal.expenses.insurers.threaten.to.be.pushed.into.the.role.of.funding.bodies.which.only.compensate.costs.”.

There. was. wide. agreement. that. any. changes. to. the.regulation. of. the. legal. profession. which. promotes.access.to.justice.also.needs.to.uphold.quality..“Jurists.working. for. insurance. companies. are. as. qualified. as.external.lawyers,”.emphasised.Reinhold.Gleichmann,.a.board.member.of.Auxilia.Rechtsschutz.Versicherung.AG,.and.he.proposed.that.“insureds.should.have.the.choice.between. a. more. favourable. insurance. that. provides.assistance.through.our.in-house.legal.experts.or.a.more.costly.option.using.external.lawyers.”

The.workshops.held.during.the.Congress.echoed.calls.for.an.easing.of.the.tightly.regulated.legal.markets.whose.overly.protectionist.approach.can.end.up.strangling.the.efforts. of. those. seeking. access. to. justice.. Regarding.the. respective. roles. of. lawyers. and. legal. expenses.insurers. in. facilitating. access. to. law,. Peter. Wiegand,.board. member. of. D.A.S.. Rechtsschutzversicherungs-AG.in.Munich,.declared.that.“legal.expenses.insurance.ultimately.fulfils.a.public.responsibility.”.

It.was.also.agreed.that.affordability.of.insurance.policies.was. a. crucial. issue. for. both. individual. and. business.consumers..The.availability.of.legal.expenses.insurance.allows.consumers.to.pursue.legitimate.rights.which.they.would. otherwise. not. be. able. to. defend,. especially. in.cases.involving.a.more.powerful.opponent..The.valuable.role.of.legal.expenses.insurers.in.educating.clients.and.keeping.unmeritorious.cases.out.of.the.courts.was.also.highlighted.


10

6. The Lawyer’s Viewpoint - Interview with Hans Smeyers

Hans Smeyers, partner in the Belgian law firm Maxius, member of the Joint Legal Assistance Insurance Committee and a member of the Council of the Leuven Bar, gives a legal professional’s viewpoint on the future landscape of legal services regulation.

Is regulation of the market for legal services unavoidable?In.my.opinion.the.answer.is.yes..The.Council.of.Bars.and.Law.Societies.of.Europe.(CCBE).has.often.emphasised.that. there. are. aspects. of. both. a. non-economic. and.an. economic. nature. which. make. regulation. of. the.profession.necessary..Be.it.at.European.or.national.level.–.the.economic.advantages.of.further.deregulating.the.profession.will.not.match.the.serious.negative.impacts.on.clients,.society.and.access.to.justice.

We.lawyers.are.not.alone.in.our.opinion..The.Copenhagen.Economics.report.on.the. legal.profession,.competition.and. liberalisation. of. January. 2006. concluded. that.“there.is.a.need.for.some.degree.of.regulation.of.the.legal.profession.because.a.totally.free.market.will.lead.to.serious.market.failures.”.

The.key.role.the. legal.profession.plays. in.democracies.based.upon.the.rule.of.law.and.the.fact.that.regulation.may.be.necessary.to.protect.overriding.public.interests,.such. as. access. to. justice. and. the. proper. functioning.of. the. legal. profession,. have. been. recognised. at. a.

European.level.by.the.European.Parliament,.the.Council.of.Europe.and.the.European.Court.of.Justice..

The. primary. economic. argument. for. regulation. is. to.ensure. high. standards. of. service.. In. an. unregulated.market,.asymmetric.information.can.lead.to.decreasing.quality..Market.mechanisms.which.can.be.used.to.limit.such.problems.will.not. function.very.well. in. the. legal.profession.according.to.Copenhagen.Economics...When.regulating.the. legal.profession,. I.believe.that. it.is.of.the.utmost.importance.to.strike.the.right.balance.between. non-economic. and. economic. factors. and. to.carefully.evaluate.the.impact.of.regulation.on.both.the.client-lawyer.relationship.and.on.society..

Which aspects require an appropriate balance? Representation.in.court.is.a.prime.example..Regulation.exclusively. reserves. this. right. to. lawyers..Copenhagen.Economics. concluded. that. “abolishing. the. monopoly.will.only.have.a. limited. impact.on.competition,.but. it.could. induce. economic. losses.. The. courts’. costs. will.increase. when. more. cases. are. taken. to. court,. and.rulings. can. distort. the. case. law”..A. case. in. point. is.Finland,. where,. in. spite. of. deregulation. of. the. legal.services. market,. legal. protection. insurers. included.clauses. in. their. policies. which. oblige. the. insured. to.engage.a.qualified.legal.adviser..It.is.a.concrete.example.supporting. the. argument. that. adequate. quality. and.effectiveness.is.guaranteed.only.when.an.appropriately.qualified.lawyer.provides.the.service..

The. abolition. of. mandatory. bar. membership. would.have.a.serious.impact.not.only.on.the.structure.of.the.legal.profession,.but.also.on.the.entire.administration.of.justice..It.goes.hand.in.hand.with.effective.regulation.of. the. profession. and. the. enforcement. of. disciplinary.rules.. Replacing. current. disciplinary. systems. with. a.public. system.would.be. incompatible.with. the.notion.of.an.independent.legal.profession..It.would.also.lead.to. higher. costs. for. the. State. without. a. guaranteed.improvement.in.terms.of.efficiency.or.enforcement..

Firm. ownership. is. another. area. where. conflicts. with.the. core. principles. of. the. legal. profession. could.


11

arise.. Independence,. confidentiality. and. avoidance. of.conflicts. of. interest. are. potentially. threatened. by. the.introduction.of.outside.ownership.

What are the essentials of professional regulation?Regulation. is. centred. on. the. core. values. of. the. legal.profession. which. are. of. paramount. importance. to.a. democratic. society. based. on. the. rule. of. law..These.values. include:. independence;. absence. of. conflicts. of.interest;. and. professional. secrecy/confidentiality.. EU.Member.States.recognise.them.as.major.objectives.and.principles.of.regulation.for.the.legal.profession..

They.should.be.seen.primarily.as.obligations.of.lawyers.to.implement.rights.of.clients..The.core.values.should.also.be.seen.as.an.instrument.of.how.access.to.justice.and.the.maintenance.of.the.rule.of.law.can.be.achieved..The.decision.of.the.European.Court.of.Justice.in.the.Wouters.case,. relating. to. Dutch. rules. prohibiting. partnerships.between.lawyers.and.accountants,.found.that.the.core.values.of.the.legal.profession,.as.recognised.by.the.bar,.can.take.priority.over.competition.considerations.

Is the legal market working for all users? The. answer. is. obviously. no,. but. that. said. a. different.approach.for.different.users,.be.they.consumers,.SMEs.

or. large.business,.would.not. be. a. good. idea..The. EU.Parliament.agrees.and.in.a.recent.resolution.has.stated.that. the. rules. governing. legal. services. “cannot. be.tailored.to.the.degree.of.sophistication.of.the.client”.

The.European.Commission.has.previously. reported.on.the.differing.needs.of.users.of.legal.services..However.the.core.values.of.the.legal.profession.are.equally.valid.regardless.of.the.type.of.client.and.furthermore.a.given.lawyer. or. firm. can. expect. to. assist. individuals. and.companies.having.different.needs..

Where.it.exists,.regulation.on.matters.such.as.fee.scales.or.advertising.has.very.limited.effects.(if.any.at.all).on.business.clients..Therefore,.it.is.not.clear.why.regulation.should.be.abolished.given.that.it. is.needed.to.protect.“low.segment”. clients.and.has.no.effect.on.business.users..

For.large.and.complex.cases.negotiation.covers.not.only.price,.but.also.quality.and.service.levels;.fee.scales.are.irrelevant.in.such.discussions..

In. my. opinion,. rules. that. prevent. truthful. advertising.and.that.limit.competitors.from.lowering.prices.are.the.most.difficult.to.justify.as.being.in.the.public.interest.


12

. 7. RIAD Workshop – Legal protection insurers strive to improve their services “What. can. legal. protection. insurers. do. to. serve. their.customers.better.-.can.a.trust.mark.help.to.achieve.this.goal?”.was.the.theme.of.a.workshop.held.in.June.2009.for. RIAD. members.. The. event. delivered. insight. into.client. expectations. and. considered. the. relative.merits.of. different. consumer. protection. instruments. such. as.standards,.trust.marks.and.quality.charters..

The. views. expressed. by. Ton. Wagemans,. partner.in. the. consultancy. CONSIDERATI. and. a. renowned.European. expert. in. co-regulation. and. self-regulation.gave.participants.an.exhaustive. insight. into.costs.and.benefits. of. the. development. and. implementation. of.such.instruments..

Ton.Wagemans.outlined.the.many.critical.factors.which.need. to. be. considered. when. launching. successful.self-regulatory. initiatives..To. create. trust. considerable.financial. commitments. are. required.. Other. factors.include. a. willingness. to. continuously. engage. in.marketing.towards.potential.members.and.consumers,.an.agreement.on.common.goals,.an.efficient.complaint-handling. system. and. effective. enforcement. of. the.rules.. Further. complications. arise. for. industries. such.as. legal. expenses. insurance.as. the.players.operate. in.diverse. legal. systems. and. are. subject. to. sometimes.contradictory.regulations..In.light.of.these.factors,.it.was.decided.that.further.analysis.would.be.necessary.before.RIAD.could.take.a.final.decision.about.the.way.forward..Other.key.speakers.at.the.workshop.included.Monique.Goyens,.Director.General. of. the.European.Consumers.Organisation. -. BEUC,. Karel. Van. Hulle,. Head. of. the.European. Commission’s. Insurance. and. Pensions.

Unit,. Wauthier. Robyns. de. Schneidauer,. Head. of.Communications. at. ASSURALIA,. the. Belgian. Insurers.Organisation,. and. Alastair. Tempest,. Director. General.of. the. European. Federation. of. Direct. and. Interactive.Marketing.-.FEDMA..

A. positive. learning. generated. by. the. event. was. that.consumers.and.other.users.of. legal.services.recognise.and. acknowledge. legal. protection. insurance. as. a.valuable. tool. which. facilitates. access. to. justice.. This.was. offset,. however,. by. the. fact. that. a. considerable.number.of.consumers.obviously.do.not.know.about.this.special. insurance. product. and. its. benefits.. Therefore,.the.participants.highlighted.the.importance.of.stepping.up. efforts. to. promote. legal. protection. insurance. and.explain.its.worth.to.citizens..

RIAD.members.highly.value.consumer.satisfaction.and.seek. to. provide. customers. with. easy. and. affordable.access. to. justice..The. insights. and. knowledge. gained.from. the. workshop. will. be. carried. forward. to. the.Congress,. being. held. in. London. on. 14/15. October.2010,. which. will. deal. with. the. assurance. of. quality..Members. place. much. importance. on. RIAD’s. role. in.aiding.legal.protection.insurers.as.they.seek.to.enhance.their.services..


13

8. RIAD Seminar – “Fresh Perspectives: the Key to New Growth”

“The.times,.they.are.a.changing”.(Bob.Dylan).-.was.the.promising.motto. for. the.Seminar.on.12/13.November.2009.which.was.the.first.time.that.the.event.was.held.outside. of. Europe.. LEGALWISE,. RIAD’s. South. African.member,. hosted. the. Seminar. in. Sun. City. and. their.outstanding.hospitality.and. the.extraordinary. location.made.it.a.most.memorable.event..RIAD.members.were.invited. to. reflect,. research. and. experience. new. ways.of. looking. at. products. and. distribution. which. may.ultimately. result. in. a. huge. leap. forward. in. the. way.legal. expenses. insurers. approach. their. business.. The.Seminar.was.intended.to.kick-off.a.serious.re-think.of.the. industry. and. how. business. is. done.. Launching. a.potentially. industry-changing.process.had.a.particular.relevance.as. the.world.grapples. for. a.way.out.of. the.global.financial.crisis...

The.underlying.concept.of.the.Seminar.was.to.help.the.participants. move. from. ‘red. oceans’. and. reach. ‘blue.oceans.’. Most. companies. are. in. red. oceans,. i.e.. their.actions.are..dominated.by.external.forces.especially.the.actions.of.competitors;.they.are.fiece.environment.and.blood.is.everywhere.-.hence.red.oceans..Blue.oceans.are.characterised.by.untapped.market.space..The.delegates.were.thus.encouraged.to.leave.the.red.oceans.behind.and.explore.uncharted.routes.to.blue.oceans.

The. Seminar. was. designed. to. introduce. participants.to. some.of. the. tools. needed. to. propel. their. business.towards.blue.oceans..This.expedition.was.facilitated.by.Fresh.Forward,.a.Dutch.consulting.agency,.specialised.in.innovative.marketing.and.strategic.innovation.

The. Seminar. was. conducted. in. a. highly. innovative.manner. in. order. to. trigger. participants’. imaginations.

and.stimulate.creative.thinking..Fresh.Forward.provided.understanding. of. how. imagination. and. creativity. can.be.employed..Participants.were.split.into.teams.tasked.with.envisioning.new.ideas.and.concepts..This.process.carried.on.throughout.the.whole.day.and.a.prize.was.awarded.to.the.best.idea..

The. teams. worked. in. successive. sessions. which. were.interrupted. by. several. presentations. covering. topics.such. as. societal. trends. expected. to. have. an. impact.on.the.service.sector.and.profiles.of.visionaries.whose.ideas.and.companies.have.evoked.revolutions. in.their.respective. sectors. by. changing. the. implicit. rules. in.place.. The. constant. switching. between. active. team.sessions.and.instructive.lectures.allowed.the.teams.to.take.up.the.acquired.knowledge.immediately.for.their.work,. identify. eventual. challenges. for. legal. expenses.insurers,. re-define. existing. unwritten. rules. governing.the.legal.expenses.insurance.sector,.and,.on.this.basis,.implement. new. rules. and. product. ideas.. At. the. end.of. the. Seminar,. all. teams. were. able. to. present. their,.sometimes.surprisingly.simple.but.enormously.effective,.inspirations.for.future.projects...

The. immediate. outcome.of. the. event.might. not. be. a.complete. overhaul. of. the. legal. expenses. insurance.market,. nevertheless. the. event. provided. participants.with.important.tools.to.help.leave.the.‘red.oceans’:.the.day.cast.a.light.on.prospects.and.opportunities.which.had.seemed.far.out.of.reach.but.which.actually.exist.at.the.very.boundaries.of.the.industry’s.current.activities..It.allowed.RIAD.members.to.invent.and.experience.various.new.ways.of.looking.at.products.and.distribution,.and,.last. but. not. least,. this. experience. may. well. help. to.improve.products.and.move. the. industry. forward. into.blue.oceans..


14

9. European Topics

Collective RedressThe.Consumer.Affairs.and.Competition.directorates.of.the. European. Commission. have. been. working. on. a.collective.redress.instrument.at.European.level:.in.mass.claim.cases.the.harm.for.the.individual.consumer.can.be.low.and.consequently.disproportionate.to.the.costs.of.pursuing.the.claim,.while.the.aggregated.amount.of.the.damage.can.be.high.for.the.size.of.the.market.and.add.up.to.considerable.amount.for.the.defendant..Therefore,.the. European. Commission. believes. that. creating. a.tool. that. empowers. consumers. in. mass. claim. cases.to. enforce. their. rights. collectively. and. make. traders.accountable. for. their. behaviour. would. enhance. the.confidence.of. consumers. in. the. Internal.Market,. be.a.stimulus.for.sound.trader’s.performance.and,.ultimately,.increase.cross-border.activities.

For. legal. protection. insurers. the. central. question. has.always.been.how.to.improve.access.to.law.and.justice.for.the.insured.person..For.this.reason,.RIAD.welcomes.any.measure.to.make.redress.more.effective.but.does.not. share. the. Commission’s. viewpoint. that. it. is. the.lack.of.a.European. framework. for.a.collective. redress.scheme. which. deters. consumers.. Moreover,. insurers.certainly. reject. any. instrument. that. operates. on. an.opt-out. basis3. as. it. would. render. the. calculation. of.premiums. for. legal. protection. insurers. very. difficult..Indeed. the. introduction. of. a. European. instrument. of.collective. redress. would. neither. remove. any. of. the.existing.obstacles.for.consumers.nor.would.it.increase.the. effectiveness. of. redress.. A. priority. should. rather.be.to.ensure.that.existing.legal.and.other.instruments.(e.g.. mediation). at. national. levels. are. interpreted.and. employed. in. a. way. which. does. not. impede. the.overarching. goal. of. providing. consumers. with. an.efficient. legal. framework. for.pursuing. their. legitimate.claims.. Equally,. the. possibility. to. employ. and. extend.existing. networks. like. the. ECC-NET. and. the. FIN-NET.in.order.to.deal.with.collective.actions.should.be.fully.exploited.prior.to.creating.new.schemes.which.are.not.certain.to.function.properly.

Principles of European insurance contract law The. cross-border. exchange. of. goods. and. services. is.the. core. of. the. Internal. Market.. These. transactions.are. governed. by. contract. law. and. so. the. Internal.Market. can. only. function. if. contracts. are. agreed,.interpreted. and. applied. by. customers. and. traders.alike.. EU.efforts. to.promote. the. Internal.Market.have.targeted. specific. areas,. such. as. unfair. contract. terms,.and. specific. sectors,. such. as. package. holidays. or.e-commerce..To.encourage.greater.coherence.between.European. legislative. measures. and. between. national.transpositions. of. European. directives,. the. European.Commission. launched,.about.a.decade.ago,. the. long-term. Common. Frame. of. Reference. (CFR). project..The.CFR.aims.to.provide.European.and.national.legislators.with.a.«toolbox». for. use.when. revising. existing. laws.and.preparing.new. legislation. in. the.area.of. contract.law;.it.contains.fundamental.principles.of.contract.law,.definitions.of.key.concepts.and.model.provisions.

At. the. request.of. the.European.Commission,.many.of.European.academics.and.experts.from.different.sectors.(inter. alia. insurance). contributed. to. the. work. on. the.CFR.project,.the.results.of.which.were.finally.published.in. February. 2008.. In. parallel,. since. September. 1999.a. so-called.‘Project.Group’. started.work.on.European.insurance. contract. law,. under. the. chairmanship. of.Fritz. Reichert-Facilides. (†),. professor. at. the. University.of. Innsbruck.. Since. April. 2004,. Helmut. Heiss,. of. the.University. of. Zurich,. took. over. the. chairmanship..The.Group.published.the.‘Principles.of.European.Insurance.

3 In contrast to an opt-in

system where claimants

only join the action if they

consciously decide to do

so, an opt-out system

means that anybody who

has been harmed by the

same or a similar illegal

practice of a trader would

automatically become part

of the action, regardless

whether they make a

conscious choice to join

or not.


15

Contract.Law’.(PEICL).in.August.2009.and.contributed.the. CFR’s. provisions. regarding. insurance.. The. PEICL.govern.all.possible.relations.between.the.parties.of.an.insurance.contract.and. the.principles.deal.with. issues.such. as. abusive. clauses,. notice. of. insured. events,.precautionary. measures,. etc.. The. PEICL. serve. as. a.model.law.for.European.and/or.national.legislators.and.can.also.be.used.by.the.insurance.industry.in.the.course.of.developing.(European).contract.terms.and.arbitrators.may.consider.them.in.their.awards.

The.decisive.question.is.now.whether.the.CFR.and.the.PEICL.will. lead. to. some.kind.of.European.Civil.Code..The.European.Commission.has.indicated.that.it.wants.to.turn.the.CFR.into.a.unique.set.of.rules,.which.could.be.used.instead.of.national.law..Parties.would.be.free.to.choose.between.the.national.law.and.the.alternative.European.law,.which.is.referred.to.as.the.‘28th.regime’.as. it. would. be. an. addition. to. the. existing. 27. legal.systems. of. the. EU. Member. States.. To. this. end,. the.Commission.has.set.up.a.group.of.legal.experts.to.draft.by.mid-2011.general. articles. for. a. European. contract.law,.using.the.CFR.as.a.basis..

There. are. ongoing. discussions. as. to. whether. similar.work. should. be. undertaken. for. insurance. contracts..To. date. there. are. relatively. few. cross-border. sales. of.insurance.contracts,.a.28th.regime.is.mooted.as.a.way.to.eliminate.some.existing.obstacles.and.thus.stimulate.the.Internal.Market.for.insurance.products..

While. the. European. Commission. is. very. keen. on. the.project,.RIAD.notes.that. it. is.currently.very.difficult. to.see.how.these.positive.expectations.could.be.fulfilled..For. instance,. consumers. would. probably. be. reluctant.to. choose. a. regime.which. they. are. not. familiar.with..Moreover,. a. 28th. regime. would. most. likely. need. to.include.a.rather.high.level.of.consumer.protection.and.so. it. could.become.very.costly. for. insurers. to.apply. it.to. their. products;. a. strong. disincentive. in. particular.for.small.companies..The.28th.regime.is.thus.a.project.which. will. take. a. long. time. to. put. into. practice. and.deliver.results.

Compensation of cross-border traffic accident victims and ‘Rome II’Regulation. (EC). 864/2007,. known. as. ‘Rome. II’.Regulation,. lays. out. the. conflict-of-law. rules. for. non-contractual. obligations:. it. introduces.a.uniform. set.of.rules. to. establish. which. national. law. is. applicable. in.case.someone.suffers.a.loss.and.has.to.claim.damages.from. the. wrong-doer.. The. applicable. law. determines.both. the. type. of. damages. eligible. for. compensation.and. the. way. these. damages. shall. be. quantified.. For.instance,.some.injuries.and.damages.such.as.whiplash.or.spoiled.holidays.are.not.recognised.in.some.Member.States. as. losses. that. can. be. compensated.. Similarly,.the.way.compensation.for. injury.or. loss.of.earnings.is.calculated.and.paid.out.(either.lump.sums.with.discount.rates.or.annuities.based.on.mortality.tables).is.also.very.different.from.one.Member.State.to.another.

For.most.people.the.question.of.which.law.is.applicable.only. becomes. relevant. when. they. suffer. harm. in. a.cross-border. road. traffic. accident.. According. to. the.Rome.II.Regulation.the.law.applicable.to.claims.arising.from. such. accidents. is. the. law. of. the. country. where.the. accident. took. place.. However,. in. cases. where.the.parties. involved. in. the. road. traffic. accident. come.from. the. same. country,. the. law. of. that. country. shall.apply..Also,. if. all. circumstances. of. the. case. are. more.related.with.another. country. than. the.one.where. the.accident.took.place,.the.law.of.the.former.shall.apply..Consequently,. people. involved. in. an. accident. abroad.are.regularly.confronted.with.the.application.of.foreign.law..This. has. raised. concerns. of. victims. in. respect. of.


16

unexpectedly.low.compensation.awards.as.well.as.the.risk.of.«early».expiry.of.the.limitation.period.applicable.under.foreign.law.

Therefore,. the. European. Commission. ordered. a. study.on.the.compensation.of.cross-border.victims.in.the.EU.and,. subsequently,. launched. a. public. consultation. in.March.2009;.just.two.months.after.Rome.II.had.come.into.force..In.August.2011.a.report.on.the.application.of.the.Rome.II.Regulation.is.due.in.which.the.Commission.will.reveal.if.it.intends.to.amend.it.

RIAD.participated.in.the.public.consultation.and.urged.the. Commission. to. carefully. offset. any. appropriate.policy.option.against.the.extent.of.the.problem.it.seeks.to.solve..In.the.case.of.victims.of.road.traffic.accidents.the.authors.of.the.study.could.not.quantify.the.actual.discrepancy. between. national. compensation. levels..Moreover,.the.number.of.persons.effectively.concerned.by.this.issue.had.to.be.narrowed.down.to.far.less.than.one.percent.of.all.road.traffic.accidents..Consequently,.while.the.issue.presents.an.important.problem.for.the.individual.concerned,.the.significance.from.the.societal.perspective. is. not. evident.. A. European. intervention.with. the. aim. of. changing. the. legal. landscape. would.therefore.not.be.proportionate.to.the.significance.of.the.problem.and.could.not.be.justified.from.a.subsidiarity.perspective.

However,. considering. the. personal. losses. suffered. by.victims,. solutions. for. existing.gaps. need. to. be. found..Legal.protection.insurers.are.playing.an.important.role.in.this.regard.by.providing.victims.with.legal.advice.and.defending.their.legal.interests.against.the.liable.party..Furthermore,. insurers. cover. the. costs. of. proceedings,.including. the. costs. of. the. adverse. party. in. the. event.that.the.victim.loses.his/her.case.and.the.applicable.law.determines.that.the.losing.party.pays..

The Mediation DirectiveDirective. 2008/52/EC. entered. into. force. on. 13. June.2008.. Member. States. have. until. 21. May. 2011. to.introduce.the.rules.necessary.to.facilitate.access.to.and.promote.the.use.of.mediation.as.a.means.of.amicable.

settlement.of.disputes. in. their.countries..The.Directive.itself.only.refers.to.cross-border.disputes,.but.Member.States. are. free. to. extend. the. scope. of. application. to.internal.disputes..

Basic. principles. have. been. established,. like. the.need. to. train. mediators,. the. promotion. of. codes. of.conduct,.the.necessity.that.agreements.reached.during.mediation. should. be. made. enforceable. upon. request.of.both.parties,.a.guarantee.of.confidentiality.and.that.mediators.and.the.parties.involved.in.the.administration.of.the.mediation.process.must.not.be.compelled.to.give.evidence. in. another. proceeding.. Moreover,. it. must.be. ensured. that. limitation. or. prescription. periods. are.suspended.or.interrupted.during.mediation.in.order.to.not.prevent.parties.from.initiating.judicial.proceedings.afterwards..

Legal. expenses. insurers. are. closely. following.transposition. of. the. directive. into. national. laws.. In.order.to.harvest.the.full.benefits.of.mediation.such.as.close. cooperation.with. the.parties. involved,.flexibility,.swiftness. and. cost. efficiency,. it. is. necessary. to. avoid.‘gold-plating’. whereby,. Member. States. introduce.unnecessary. restrictions.. Therefore,. RIAD. calls. upon.legislators. to. acknowledge. the. expertise. of. legal.expenses.insurers.as.mediators.and.to.keep.this.area.of.dispute.resolution.open.for.all.players.

ADR for financial services Following. on. from. the. December. 2008. public.consultation. in. order. to. determine. ways. in. which.Alternative. Dispute. Resolution. (ADR). systems. in. the.financial.sector.could.be.improved.in.the.interest.of.both.consumers.and.financial.service.providers,.the.European.Commission.published.a.summary.of.the.responses.in.September.2009..The.respondents.generally.recognised.the.benefits.of.ADR.schemes.as.well.as.the.importance.of. improving.access. to. them..A.Commission. study.on.the.use.of.ADR,.published.shortly.afterwards.found.that.the.availability.of.ADR.schemes.has. improved.since. it.first. began. compiling. a. European. database. on. ADR.schemes..


17

RIAD.agrees.that.ADR.is.one.of.the.least.costly,.rapid.and.very. often. most. satisfying. ways. of. resolving. disputes..However,. there. remain. quite. a. few. obstacles. for.consumers. seeking.ADR. for. cross-border. disputes,. i.e..languages,.legal.and.procedural.issues,.communication.costs,.etc..Further.development.and.promotion.of.FIN-NET.will. solve. some.of. the.problems.by.providing.an.easily. accessible. European. network. for. cross-border.cases,. RIAD. would. like. to. stress. that. consumers. still.need. individualised. help. in. finding. adequate. and.feasible.solutions.for.their.specific.problems,.especially.in.cross-border.disputes..Citizens.will.remain.reluctant.to. use.ADR. for. cross-border. disputes. unless. they. are.professionally.assisted,.a.service.which.legal.protection.insurers.provide.with.great.expertise.

VAT on insurance premiumsInsurance. premiums. generally. exempt. from. VAT,.however,.since.November.2007.a.legislative.discussion.has.been.ongoing.regarding.the.treatment.of.financial.services.in.the.VAT.system..The.European.Commission’s.original. approach. was. that. Member. States. would.be. able. to. give. individual. insurance. companies. the.option. to.decide. for. themselves.whether. they.wanted.to. be. exempt. from. or. submitted. to.VAT;. in. the. latter.case,. allowing. insurers. to. deduct.VAT. from. their. own.purchases..

In. the. course. of. the. debate,. the. Council. of. Ministers.(this.legislation.requests.unanimity.in.the.Council).has.removed. this.option.and. returned. to. the.conservative.approach,.i.e..generally.exempting.insurance.premiums.from.VAT;.a.decision.which. insurers.are.not. in. favour.of.since.it.results.in.‘hidden’.VAT.charges.to.customers.which. cascade. through. the. system. and. increase.operating.costs.for.EU.businesses.

Should.the.VAT.exemption.for. insurance.premiums.be.maintained,. it. is. important. that. out-sourced. services,.which.constitute.a.constituent.element.of.the.insurance.service.being.provided.are.equally.exempt.from.VAT..In.the.case.of.legal.expenses.insurers,.this.would.include.legal.services.provided.by. lawyers..Currently,.the.texts.

under. discussion. by. the. Council. of. Ministers. are. not.clear-cut.regarding.legal.services..RIAD.is.seeking.more.clarification.and.an.unambiguous.definition.in.order.to.preclude.that.legal.expenses.insurers.are.discriminated.by. having. to. pay. VAT. on. out-sourced. services. while.other. insurers. enjoy. exemptions. for. their. out-sourced.services.

Renewal of the Insurance Block Exemption Regulation A. new. Insurance. Block. Exemption. Regulation. (BER).entered. into. force.on.1.April.2010..The.previous.BER.exempted. agreements. between. insurance. companies.on. joint.compilations,. tables.and.studies;. the.creation.of. insurance. pools;. the. establishment. of. non-binding.standard.policy.conditions.and.the.cooperation.on.the.testing.and.acceptance.of.security.devices.from.the.EU.ban.on.restrictive.business.practices.in.the.Treaty.on.the.Functioning.of.the.European.Union..

Originally,. the. BER. was. meant. to. facilitate. the.Commission’s. task. in. view. of. the. large. number. of.individual. notifications. of. such. co-operations. and.therefore. provided. legal. certainty. for. insurance.companies.. However,. in. 2003,. Regulation. 1/2003.reversed. the. system. by. introducing. an. ‘ex. post.notification.system’.which.generally.obliges.companies.to.self-assess.their.agreements.instead.of.requiring.an.ex.ante.exemption.from.the.Commission..

Therefore,. the.Commission.decided.that.the. insurance.sector,.like.most.other.industries,.can.operate.without.a.BER.and.renewed.neither.the.exemptions.for.standard.


18

policy.conditions.nor.for.security.devices.in.the.new.BER..Should.they.wish.to.continue.to.use.such.agreements,.insurance.companies.will.have.to.assess.whether.they.meet.the.Article.101(3).exemption.criteria.of.the.Treaty.–.a.process.fraught.with.legal.uncertainty.

Insurance Guarantee SchemesInsurance. guarantee. schemes. (IGS). provide. a. safety.net.for.policyholders.in.case.an.insurance.undertaking.becomes. insolvent.. Unlike. the. banking. and. the.securities.sectors,.no.Community.harmonisation.exists.for. insurance..Instead.only.a.few.Member.States.have.IGS.and.they.differ.in.scope..The.European.Commission.has.been.examining.the.problem.and.reviewing.possible.measures. to. reinforce. the. protection. of. consumers,.investors.and.small.companies.

In. January. 2008,. the. Commission. published. a. report.by. OXERA,. giving. an. overview. of. the. functioning. of.the. various. existing. schemes. which. was. followed. by.a. public. consultation.. Subsequently,. in. March. 2009.the. Commission. published. a. Communication. entitled.Driving. European. Recovery. and. in. July. 2009. CEIOPS,.the.Committee.of.European.Insurance.and.Occupational.Pensions. Supervisors,. made. some. recommendations.about. the. degree. of. harmonisation,. the. level. of.coverage,.the.geographical.scope.and.the.structure.and.functioning.of.a.possible.EU.regulation.Since. then. the. Commission. has. been. analysing. the.adequacy. of. existing. guarantee. schemes. and. will.publish.a.White.Paper,.consisting.of.legislative.proposals.and.an.impact.assessment..The.Commission’s.position.has.always.been.that.more.effective.and.comprehensive.measures. are. necessary. to. protect. policyholders.equally. throughout. Europe..Therefore,. insurers. should.expect. the. proposals. to. suggest. a. certain. degree. of.harmonisation. of. national. IGS. and. to. oblige. life. and.non-life. insurers. alike. to. make. available. extra. funds..Although. a. better. protection. of. policyholders. and.beneficiaries.of. insurance.contract. is.most.welcome. it.should.be.noted.that.this.will.come.at.a.cost.for.insurers.and.policyholders.alike.

Equal Treatment Directive The.European.Commission.has.several.directives.which.aim. to. ensure. equal. treatment. in. various. aspects.of. daily. life. -. from. the. workplace,. to. education,. to.healthcare.and.access. to.goods.and.services.. In.order.to.complement.existing.EC.legislation.a.new.Directive.was.proposed.in.July.2008.to.prohibit.discrimination.on.the.grounds.of.religion.or.belief,.disability,.age.or.sexual.orientation. to. areas. outside. employment,. including.access.to.goods.and.services..

This.proposal,. as.with.previous. legislation,. is. relevant.for. insurance. as. it. touches. on. how. risk. is. assessed..Legal. protection. insurers,. for. instance,. offer. specific.tariffs,.policy.conditions.and.premium.rates.to.students.or.senior.citizens.as.risk.analysis.show.that.they.are.less.likely.to.be.involved.in.disputes.than.somebody.who.is.in.the.full.swing.of.his.working.life..Consequently,.the.draft.text.permits.differences.in.treatment.on.the.basis.of.age.or.disability. in. the.case.of.financial. services. in.which.the.use.of.age.or.disability.is.an.important.factor.in.the.assessment.of.risk.based.on.relevant.and.accurate.actuarial. or. statistical. data.. However,. discussions. are.still.ongoing,.particularly.on.the.key.notion.of.objective.and.reasonable.justification,.so.as.to.distinguish.clearly.between.differences.which.are.justified.and.which.are.not..

When. the. European. Parliament. delivered. its. opinion.on. the. directive. proposal. in.April. 2009. it. asked. that.the.law.obliges.insurers.to.make.such.risk.assessment.


19

data.public;.the.legislative.procedure.has.since.reached.its.final.stage.and.is.awaiting.the.final.decision.of.the.Council.of.Ministers..

Which court is competent in the Internal Market? – ‘Brussels I’ The. quintessence. of. the. Internal. Market. is. that.goods. and. services. flow. freely. from. one. Member.State. to. another. and. that. citizens. are. able. to. pursue.and. enforce. their. rights. whenever. something. goes.wrong.. The. Council. Regulation. (EC). 44/2001. on. the.jurisdiction,.recognition.and.enforcement.of.judgments.in.civil.and.commercial.matters.(known.as.the.‘Brussels.I’. Regulation),. determines. jurisdiction. in. the. case. of.cross-border.disputes.and.facilitates.the.movement.of.judgments.within.the.Internal.Market..

In.April. 2009. the.Commission.presented.a.Report.on.the. application. of. Brussels. I.. While. the. Commission.considers.that.Brussels.I.has.generally.been.successful.it.identified.a.number.of.areas.where.changes.might.be.appropriate.and.launched.a.public.consultation.to.get.stakeholders’.feedback.regarding.the.following.issues:.•. The. proceedings. for. enforcement. in. one. Member.

State.of. judgments.given. in.another.Member.State.(exequatur),

•. The.different.levels.of.access.to.justice.and.protection.of.EU.citizens.in.disputes.with.parties.not.domiciled.in.the.EU,

•. The. lack. of. coordination. of. court. and. arbitration.proceedings.

The. Commission. is. presently. reviewing. the. answers.collected.through.the.consultation.process.and.further.steps.will.be.taken.during.the.months.ahead..

Which law applies to a contract? - ‘Rome I’Besides. being. able. to. determine. which. courts. have.jurisdiction. over. a. cross-border. dispute. it. is. equally.important. for. the. proper. functioning. of. the. Internal.Market. to. know. which. national. law. applies. to. a.cross-border. contract..Therefore,.after. several. years.of.consultations,. on. 17. December. 2009,. Regulation. EC.593/2008. (or. ‘Rome. I’. as. it. is. known). introduced. a.

uniform.set.of.rules.on.the.law.applicable.to.contractual.obligations.in.civil.and.commercial.matters..

Rome. I. contains. specific. conflict. of. law. rules. for.insurance. contracts. which. have. been. transferred,.without. changes,. from. the. insurance. directives;.reinsurance.contracts.are.excluded.from.its.scope..For. an. insurance. contract. covering. a. large. risk. the.parties. can. freely. choose. the. applicable. law.. If. the.applicable.law.has.not.been.chosen,.the.contract.shall.be.governed.by.the.law.of.the.country.where.the.insurer.has.his.habitual.residence..

For.contracts.not.covering.large.risks.the.parties.can.-.as.a.general.rule.-.choose.to.apply.(a).the. law.of.the.Member.State.where.the.risk.is.situated.at.the.time.of.conclusion.of.the.contract.or.(b).the.law.of.the.country.where.the.policyholder.has.his.habitual.residence..

In.the.case.of.life.insurance.contracts,.parties.can.also.chose.to.apply.the.law.of.the.Member.State.of.which.the.policyholder.is.a.national.

The.European.Commission.will.report.on.the.application.of.Rome.I.by.June.2013..

Future EU cooperation in judicial matters - The Stockholm ProgrammeFollowing.its.public.consultation.on.the.scope.of.judicial.matters.and.home.affairs,. in.May.2009.the.European.Commission. published. the. Stockholm. Programme,.which.defines.the.plan.for.future.cooperation.over.the.next.5.years.

In. general. the. new. Programme. further. develops. the.justice.and.home.affairs.policies.previously.adopted.by.the.EU.in.Tampere.in.1999.and.at.The.Hague.in.2004.and.its.intention.to.facilitate.access.to.law.for.EU.citizens.is.in.principle.very.positive..It.is.surprising,.however,.that.the.Commission.seems.to.be.determined.to.abolish.the.exequatur. procedure. and,. most. importantly. for. RIAD.members,. it. envisages. further. harmonisation. of. the.rules.on.the.law.applicable.to.insurance.contracts..RIAD.will.continue.to.closely.monitor.developments..


20

10. National level developments

Discussions in Italy about reforms of the legal professionBy Pierluigi Lissandron – Corporate Lawyer Manager D.A.S. Italy, Renzo De Vido - Claims Department Manager D.A.S. Italy, Stefanie Kerscher – D.A.S. Professional Consultant

In.Italy,.as.elsewhere.in.Europe,.there.are.ongoing.policy.discussions.about. the. limits.of.providing. legal.advice,.the. pre-trial. management. of. disputes. and. about. the.players. who. are. qualified. to. conduct. these. activities..The. Italian. Parliament. is. currently. finalising. a. law. to.reform.the.legal.profession..

The.new. law.amalgamates.several.bills.and.has.been.subject. to. the. advocacy. of. the. Italian. National. Bar.Council. (the. Italian. lawyers’. association),. who. have.focused.on.the.reserving.of.exclusive.rights.to.lawyers.regarding.legal.and.pre-trial.advice..

In.its.initial.draft,.the.bill.was.to.reserve.to.«lawyers.....the. activity,. carried. out. professionally,. of. legal. advice.and.assistance.out.of.court.in.every.field.of.law.».

Under.this.formulation,.the.activity.of.legal.advice.and.pre-trial. assistance. by. legal. protection. insurers. (not.working.as.professionals,.but.as.firms).were.inhibited..The.ban.would,.however,.have.had.a. clear.normative.

conflict.with.other.state.laws,.which.would.have.been.difficult.to.solve..Indeed,.the.Code.of.Private.Insurance.(D..Lgs..209/2005),.incorporating.the.Directive.87/344/EEC,.allows.legal.protection.insurers.to.«handle.directly.the.activities.of.claims.management.and.to.give. legal.advise».(Article.164.paragraph.2.letter.a)..The.two.laws.would.obviously.have.been.in.opposition:.it.was. legally.not.possible. to. reserve.special.activities.exclusively. to. professionals,. in. the. presence. of. a. law.that.already.provides.the.same.activity.to.others..The.bill. continued. to.evolve.and.by. July.2009.several.proposals. had. been. united. in. one. document. by. a.«restricted.committee»,. composed.of.members.of. the.Italian. Senate’s. Commission. of. Justice..At. the. end. of.September.the.Italian.Antitrust.Authority.expressed.its.opposition. to. the.draft.of. the.new. law.because.of. its.heavy. restrictions. to. the. functioning.of.a. free.market..Extending.the.activities.exclusively.reserved.to.lawyers.would. have,. according. to. the. Authority,. restricted.the. free. competition. of. professionals,. imposing. high.administrative.costs.for.citizens.and.firms.alike..

The.discussion.in.the.Senate.continued.and.an.amended.formulation.of.the.bill,.was.approved.on.17.November.2009.. This. amendment. still. provides. two. important.exceptions.to.the.lawyers’.exclusive.right.of.extrajudicial.advice.and.assistance:.•. The.first.is.a.general.exception.for.all.cases.otherwise.

provided. by. law..By. this. definition. legal. protection.insurers.work.done.would.seem.to.be.recognised.or.at.least.not.openly.put.into.question..

•. The.second,.addressed.to.company.lawyers,.regards.the.legal.advice.and.assistance.provided.in.favour.of.their.employers..

Should. this. version. of. the. bill. be. confirmed. by. the.Parliament,. the. industry’s. original. concerns. could. be.resolved..Finally,.apart. from.these.considerations,. it. is.noteworthy. that. the. bill. intends. reinstating. minimum.fees..Such.minima.had.been.abolished.by.the.first.of.the.Bersani.Decrees.in.2006.(n..223/2006.converted.in.law.n.248/2006).following.the.European.Court.of.Justice’s.judgment.of.December.5,.2006.(Joined.Cases.C-94/04.and.C-202/04).


21

Redrafting insurance contract law in SwitzerlandBy Alain Freiburghaus, CEO of DAS Switzerland

Swiss.insurance.contract.law.is.one.hundred.years.old.and. needs. to. be. modernised;. nobody. contests. this..However.the.revision.of.contract.law.presently.underway.in. Switzerland. has. repercussions. for. legal. protection.insurance.which.had.not.initially.been.intended..

The. new. law. will. integrate. the. specific. provisions. for.legal.protection.insurance.which.are.presently.included.in.the.regulation.on.insurance.supervision..The.present.dispositions. on. legal. protection. insurance. originate.from. the. regulation. which. was. adopted. in. 1991.when. Switzerland. had. to. adapt. its. legislation. to. the.new.European.Directive. in.this.matter..Since.then.this.legislation.has.turned.out.to.be.entirely.satisfactory;.so.many.have.asked.why.change.it?.

This. is. in.fact.the.conclusion.drawn.by.experts.on.the.basis.of.the.preliminary.draft.law.and.by.the.authors.of.the.draft.which.underwent.a.public.consultation.some.months.ago..The.legal.text.has.been.altered.in.spite.of.the.intentions.not.to.change.any.dispositions.regarding.legal.protection.insurance.which.had.been.announced.in.the.commentaries..Even.if.these.modifications.appear.to.be.derisory.for.a.layperson,.their.potential.practical.consequences. for. the. industry. could. be. extremely.serious..Consequently,.over.the.past.2.years,.the.industry.has.been.fighting. for.a. return.to. the. initial. legal. text,.maintaining.the.definition.of.legal.protection.insurance,.underlining.the.duality.of.its.function.(provision.of.legal.services.and.payment.of. costs. for.defence).and.using.

a. clear. terminology. which. does. not. leave. room. for.interpretation..

The.draft.law.will.be.presented.to.the.Parliament.at.the.end. of. 2010. and,. presumably,. debates. will. focus. on.points.which.are.not.connected.to.our. industry;.some.consider. that. consumer. protection. aspects. go. too. far.while,. on. the. contrary,. others. think. that. they. are. too.feeble..The.Swiss.Section,. just. like. the.Legal.Expenses.Commission. of. the. Swiss. Insurance. Association,. has.been.following.this.issue.in.a.particularly.active.way..

Legal protection in FranceBy Marie-Emmanuelle Schiltz, CEO of Juridica-Axa, France

1. The French marketIn.France,.the.legal.protection.insurance.market.remains.one.of.the.most.dynamic.branches.of.non-life.insurance..Its.turnover. increased.by.11.6%.in.2008.whereas.the.non-life.business.recorded.average.growth.of.2.5%..The.market.continues.to.be.driven.by. insurers.and.mutual.companies.as.well.as.by.the.banks.

More.than.half.of.the.policies.covering.private.persons.are. integrated. into. another. contract. which. does. not.constitute.an.insurance.contract,.38.7%.are.integrated.into.another.insurance.contract.and.only.7.3%.account.for.stand-alone.insurance.contracts..

For. professionals,. more. than. half. of. the. contracts.are. taken.out.as.group.contracts.by.unions,.34%.are.integrated. into. a. supporting. insurance. contract. and.14%.are.individual.insurance.contracts.

Since.2007,.all.these.contracts.have.been.governed.by.the.new. law.on. legal. protection..This. new. regulation.(1). redefines. the. notion. of. a. claim;. (2). changes. the.role. that. lawyers.have. in.handling.disputes,. including.the.pre-trial.phase;.(3).prescribes.how.insurers.have.to.suggest. a. lawyer. to. their. customers;. (4). prohibits. all.negotiations.about.fees.between.lawyers.and.insurers.Since.2009,.discussions.have.been.going.on.between.insurers.and.legislators.about.the.social.importance.of.


22

legal.protection.insurance.in.facilitating.access.to.justice.and. law,. in.particular. for. the.most.destitute..Plans. to.implement. the. principle. of. subsidiarity. between. legal.aid. and. legal. protection. insurance. and. to. create. a.legal. protection. insurance. product. to. complement. all.obligatory.insurance.contracts.are.under.consideration..Despite. the. industry’s. strong. performance,. legal.protection. insurance. is. used. by. just. 40%. of. the.population.

2. French survey on legal protection insurance The.French.RIAD.Section,.Legal.Protection.Companies.Group. (“Groupement. des. Sociétés. de. Protection.Juridique”).GSPJ4.presented.the.3rd.edition.of.its.survey.performed.by.the.IPSOS.Institute..The.telephone.survey.of.a.representative.sample.of.individuals.was.conducted.in. July.2009. in.order. to.measure. the.knowledge.and.needs. of. the. French. with. regard. to. legal. protection.insurance.

A.growing.reputation.of.legal.protection.insuranceThe.survey.shows.that.legal.protection.insurance.products.are.becoming.significantly.better.known.in.France:.66%.of.the.French.(versus.48%.in.2003).are.aware.of.this.insurance.product.and.that.it.offers.support.for.judicial.and. non-judical. handling. of. conflicts.. Of. these,. 58%.say.that.they.have.taken.out.legal.protection.insurance..Those.who.have.not.primarily.believe.that.they.will.not.have.to.deal.with.legal.problems.(27%).or.that.they.are.protected.by.other.means.(24%)..

Perception.of.legal.protection.insuranceThe. French. consider. legal. protection. insurance. to. be.primarily.necessary.for:..•. Reparations. for. an. accident. or. act. of. aggression.

(82%);•. Problems.related.to.consumption.of.goods.or.services.

(70%);•. Vehicle-related.problems.(66%);•. Health-related.problems.(66%);•. Conflicts. with. an. administration. or. public. service.

(66%);•. Problems.related.to.the.residence.(62%).

With. regard.to. their.services,. legal.protection. insurers.are. perceived. by. the. insured. as. accessible. (74%),.competent. (74%),.and.offering.affordable. (72%).and.high-quality.(66%).services.(for.lawyers.the.comparative.figures.are.31%,.80%,.14%.and.72%.respectively).

The. average. annual. premium. for. a. legal. protection.contract. for. a. private. individual. is. between. €50. and.€70..For.a.contribution.of.€150.to.€250,.it.is.possible.to.take.out.insurance.extended.to.family.law,.and.notably.for.handling.divorce..According. to. the. 2009. GSPJ. survey,. 74%. of. those.questioned. believe. the. amount. of. €60. is. appropriate.(42%. consider. it. “the. right. price”,. and. 31%,. “not.expensive”)..

Insurers’.services.and.expertiseThe.survey.confirms.the.accessibility.of.legal.protection.solutions.and.the.role.of.insurers.a.promoters.of.access.to.law..As.a.complement.to.legal.aid,.legal.protection.insurance. is. oriented. toward. those. subject. to. legal.action,.with. resources.above. the. ceiling. for. legal. aid..This. is. why. legal. protection. insurance. constitutes. a.service. allowing. consumers. to. assert. their. rights. in. a.simple.and.rapid.way..

4 The GSPJ is the national

section of RIAD and an

association under the Law

of 1901 bringing together

the principal French legal

protection insurance

companies: Assistance

Protection Juridique, CFDP,

CIVIS, DAS, Européenne

de Protection Juridique,

Groupama Protection

Juridique, Juridica, La

Paix, Pacifica, Matmut

Protection Juridique,

Thèmis, Protexia France,

and Le Sou medical.


23

To.this.end,.legal.protection.insurers.provide.a.variety.of.services.to.their.clients.which.normally.include.several.steps.following.the.progression.over.time.of.a.conflict:.from.the.initial.amicable.stage,.during.which.the.insurer.informs. the. insured. of. his. rights. and. obligations,.through.to.taking.the.matter.to.court.and.covering.the.costs.of.the.proceedings.

60%. to. 70%. of. the. legal. protection. disputes. in.France.are. resolved. through.amicable. solutions.. Legal.protection.insurers.have.therefore.developed.a.genuine.expertise. with. regard. to. negotiation. and. settlement.which.fulfils.the.objectives.of.consumer.protection.and.fits.in.with.alternative.methods.of.conflict.resolution.

A.key.determining.factor.of.the.legal.protection.insurers’.effectiveness.is.that.the.non-judicial.phase.is.conducted.by.the.insurers’.own.qualified.legal.practitioners.-.two.thirds. of. whom. have. at. least. five. years. of. university.education. (source:. GSPJ).. As. a. result,. only. a. small.premium.is.needed.to.meet.the.legal.protection.needs.of.the.insured..

Civil Justice in England and Wales – Report of Lord Justice JacksonBy Paul J. Asplin, CEO of D.A.S. UK Group

BackgroundIn. 2008,. Lord. Justice. Jackson,. a. senior. English. Judge.was.invited.to.consider.the.English.Civil.Justice.system,.specifically. with. regards. to. the. questions. of. costs. of.legal.actions.and.access.to.justice...The.report.was.published.in.January.2010.and.follows.a. sustained. campaign. by. liability. insurers. against.what. they. regard. as. ‘disproportionate’. legal. costs,.although.it.should.be.noted.that.in.England,.the.level.of.damages.awarded.in.tort.cases.is.below.those.awarded.in. comparable. jurisdictions. with. English-based. legal.systems,. whereas. legal. costs. are. broadly. similar..This.does.create.the.impression.that.legal.costs.are.high.

Over.a.decade.ago,.state.legal.aid.for.most.tort.cases,.including.personal. injury,.was.abolished.and. replaced.

by.a.system.whereby.claimants.are.able. to.enter. into.‘conditional. fee’. arrangements. with. lawyers,. usually.referred. to. as. ‘no. win,. no. fee’. deals,. under. which.lawyers.only.charge.if.the.case.is.won...Under.existing.English. costs. rules,. based.upon. the.principle. that. the.loser.pays,.the.lawyer.can.recover.his.costs.and.success.fees.from.the.responsible.party.

Claimants. without. traditional.legal.expenses.insurance.(LEI).can.also.arrange.an.‘after.the.event’. (ATE). LEI. cover,. which.protects.them.from.the.risk.of.having.to.pay.the.defendant’s.costs.if.the.case.is.lost..The.ATE.premium. is. also. recoverable.from. the. responsible. party. if.the.case.is.won.

Liability. insurers. therefore. complain. that. not. only. do.they.have. to.pay.damages;. they.also. face. the.burden.of. success. fees. and.ATE. premiums. as. well.. However,.the. system. does. allow. genuine. claimants. to. recover.damages. without. deduction. of. their. own. costs. and.without. the. risk.of. paying. the.other. sides’. costs,. and.therefore. the. system. is. widely. regarded. as. a. good.alternative.if.state.legal.aid.is.unavailable.

The proposalsLord.Justice.Jackson.has.made.a.series.of.proposals.to.reduce.the.costs.of.litigation.whilst.improving.access.to.justice...Whilst.the.report.runs.to.nearly.600.pages,.the.key.proposals.are.to:•. Introduce.‘one-way.cost.shifting’•. End.the.recoverability.of.ATE.premiums•. End.the.recoverability.of.success.fees•. Introduce.contingency.fees•. Allow. free. choice. of. lawyer. as. soon. as. a. claim. is.

made.under.a.LEI.policy•. Ban.‘referral.fees’

If.adopted,.these.proposals.would.have.a.fundamental.impact. on. LEI. insurers,. both. in. respect. of. traditional.before.the.event.(BTE).insurance.and.ATE.


24

Changing the rulesOne-way.cost.shifting.is.a.proposal.to.modify.the.rule.of.‘loser.pays’.and.to.replace.it.with.the.American.system,.whereby.claimants.are.able.to.pursue.cases.without.any.risk.of.having.to.pay.the.defendant’s.costs.. .Although.defendants.would.be.unable.to.recover.costs,.claimants.should.still.be.able.to.do.so. in.successful.cases,.so. in.this.respect,.it.goes.further.still.

This.change.would.remove.the.need.for.ATE.insurance.and. according. to. Jackson,. therefore. remove. this. cost.from. the. system.. .However,. it. is.well. known. that. the.American. system. leads. to. much. higher. costs. overall.and.encourages. litigation;. research.by. the.Manhattan.Institute.for.Policy.Research.shows.that.the.total.cost.of.tort.litigation.in.the.US.is.(per.capita).three.times.higher.than. in. the.UK.. For. this. reason,. Jackson’s.proposal. is.unlikely.to.find.favour.with.Government.

However,. as. an. alternative. Jackson. proposes. that.claimants. should. pay. their. own. ATE. premiums. and.success.fees.and.not.be.able.to.claim.these.back..This.would.clearly.reduce.the.amount.of.retained.damages.for.a.successful.claimant,.but.it.would.of.course.shift.the.burden.of.cost.from.the.defendant’s.insurance.company.onto.the.injured.party..To.offset.this,.Jackson.proposes.that.damages.should.be.increased.by.10%,.although.in.most.cases.this.would.not.nearly.be.enough..Therefore,.the.English.claimant.would.be.even.worse.off.still.than.his.counterparts.in.other.jurisdictions.

Jackson’s. third. proposal. regarding. ATE. is. that. if. the.costs. liability. remains. and. ATE. premiums. remain.recoverable,. then.ATE.premiums. should. be. capped.at.no.more.than.50%.of.damages..This.is.a.repeat.of.an.old. argument. put. forward. by. defendants. which. tries.to. link. the.ATE. risk. to. the.amount. claimed..However,.this.has.been.well.tested.in.the.English.courts.already.and,. of. course,. it. has. been. proven. that. a. reasonable.premium.should.be.linked.to.the.underwriting.risk,.not.the.level.of.damages..In.ATE,.this.means.the.likely.level.of.legal.costs.and.the.risk.of.winning.or.losing.the.case..Accordingly,.the.risk.premium.can.be.more.or.less.than.the.damages.claimed.

A.good.example.of.this.was.a.test.case.in.which.a.local.council.refused.to.compensate.a.young.boy.injured.by.broken.glass.at.a.council.owned.playground..Whilst. it.was. clear. that. the. prospects. of. the. case. succeeding.were.good,.the.legal.costs.were.going.to.be.high.given.the.council’s.refusal.to.pay..As.a.result,.the.calculated.ATE. risk. premium.was.actually.much.higher. than. the.fairly. low. level. of. damages. claimed.. When. the. case.

was.won,.the.council.refused.to.pay.the.ATE.premium,.claiming.that.it.was.disproportionate,.but.when.the.ATE.insurer.explained.the.calculation,.the.court.agreed.that.the. premium. was,. nevertheless,. reasonable. and. fully.recoverable.

The impact on BTE insuranceJackson’s. suggestions. would. also. have. a. big. effect.upon.BTE.LEI.insurers....

In. England,. where. BTE. premiums. are. very. low,. LEI.insurers.have. to. rely.on. income. from.certain. types.of.claim.in.order.to.make.up.for.this..This.arises.mainly.in.personal. injury. claims.where. lawyers.make.very.good.profits.from.winning.cases...Accordingly,.market.forces.dictate. that. the.‘owner’. of. the. claim. (the. LEI. insurer).should. be. able. to. share. some. of. the. surplus. profits.with.the. lawyer.and.this. is.mainly.achieved.by.asking.lawyers. to. pay. a. referral. fee.. Jackson. has. proposed.that,. in. future,. referral. fees. should. be. banned. and.lawyers.should.be.able.to.retain.all.of.the.profits,.as.he.thinks. that. referral. fees.somehow.add.to. the.costs.of.the.system..If. implemented,.this.loss.of.income.would.


25

lead. to. a. sharp. rise. in.BTE.premiums. and,. of. course,.even.higher.profits.for.lawyers..However,.this.aspect.of.Jackson’s.review.is.unlikely.to.have.much.impact,.as.in.England,.LEIs.will.be.allowed.to.own.law.firms.in.the.near.future.

Another.proposal. is. that. free.choice.of. lawyer. should.be. allowed. as. soon. as. a. claim. is. made. (even. before.proceedings. are. started).. Research. commissioned. by.RIAD. shows. that. the. cost. of. ‘free. choice’. lawyers. is.up. to. six. times. greater. than. in-house. LEI. lawyers,. so.this. would. have. the. effect. of. greatly. increasing. LEI.premiums.

Taken. together,. Jackson’s. more. extreme. proposals.would,. on. the. one. hand,. end. the. ATE. business. in.England.–.which.accounts.for.at.least.25%.of.the.LEI.market.–.and.on.the.other.hand,. increase.the.cost.of.BTE. LEI. to. continental. European. levels,. signalling. the.end.of.the.UK.LEI.business.model.which.provides.cheap.cover.to.a.mass.market.In.fact,.the.future.of.the.cheap.UK.‘add-on’.LEI.model.is.already.in.doubt.as.consumer.awareness.of.the.cover.–.and. therefore. claims. frequencies.–.grow.and. there.can. be. little. doubt. that. the. Jackson. proposals. would.seal.this.fate.

Although. Jackson’s. ideas. are. unlikely. to. be. adopted,.they. do. illustrate. the. difficult. circumstances. under.which.UK.LEI.insurers.are.currently.operating.

A new approach to insurance contracts in the Netherlands - Informed renewal and contract periodsBy Jan van der Burgh, Deputy Managing Director of Legal Services DAS The Nederlands

IntroductionUntil. a. few. years. ago. it. was. normal. for. insurance.contracts. in. the.Netherlands.to.be.concluded.for.5.or.10.years..This.created.a.long-term.relationship.with.the.policyholder. and.enabled. the. insurer. to.offer. a. lower.premium.. Today,. long-term. contracts. are. regarded.as. ‘gagging’. contracts. because. they. prevent. the.

customer. from.switching. insurers,. for.example,. if. they.are.not.satisfied.with.the.service.the. insurer.provides..In.addition,.the.policyholder.cannot.readily.respond.to.attractive.offers.with.premium.discounts.that.competing.companies.offer.new.customers.

Dutch. politicians. have. therefore. been. discussing. for.many. years. the. possibility. of. prohibiting. long-term.insurance. contracts.. With. the. introduction. of. a. new.insurance. law. in. 2006,. it. was. stipulated. that. if. the.insurance.is.taken.out.for.a.period.of.more.than.5.years,.the. policyholder. must. have. the. option. of. terminating.the.agreement.every.5.years.

During. the. past. few. years,. particularly. with. private.insurance. policies,. annual. contracts. have. become.increasingly.prevalent..Should.the.policyholder.choose.a. longer-term. contract,. a. premium. discount. is. often.given.

Tacit renewalSo. far. no. changes. have. been. made. regarding. tacit.renewal. of. the. contract.. If. the. policyholder. does. not.terminate. the. insurance,. in.due. time,.prior. to. the.end.of. the. contract,. the. insurance. will. automatically. be.renewed.for.the.same.period.of.time..Insurers.use.tacit.renewal.to.protect.the.customer..If.the.insurance.were.not.to.continue.automatically.and.policyholders.forgot.to. renew. their. insurance,. they. would. run. the. risk. of.finding.themselves.uninsured.


26

Recently,. Dutch. politicians. have. become. more. and.more.favourable.to.ending.such.tacit.renewal.practices..A. legislative. proposal. regarding. the. tacit. renewal. of.notice.periods.for.membership,.subscriptions.and.other.agreements. was. passed. by. the. Lower. House. on. 15.October.2009.and.is.now.before.the.Upper.House.for.debate5..In.future,.subscriptions.and.contracts.concluded.with.sports.clubs,.book.clubs.and.energy.suppliers.may.no.longer.be.tacitly.renewed..Only.subscriptions.to.daily.and.weekly.newspapers.and.magazines.may.be.tacitly.renewed.for.periods.no.longer.than.3.months.

A. narrow. majority. in. the. Lower. House. believes. that.such.a.scheme.should.also.be.introduced.for.insurance.policies.. In. 2009,. the. Dutch. Association. of. Insurers.responded.to.this.signal.by.putting.forward.a.code.of.conduct.for.informed.renewal.and.contract.periods..By.adopting.this.scheme.of.self-regulation,.the.Association.hopes.that.Parliament.will.abandon.plans.for.a.statutory.scheme.

Code of conduct for informed renewal and contract periodsThe. starting. point. for. the. code. of. conduct. is. that.private.non-life.insurance.policies.(which.also.includes.legal. expenses. insurance). will. be. concluded. for. a.

maximum.period.of.one.year..If.the.policyholder.wants.an. insurance. contract. for. longer. than.12.months,.he/she. must. explicitly. confirm. this. by. providing. an. extra.(second).signature.when.concluding.the.policy.

Each.consumer.must.be.informed.at.the.end.of.the.first.contract. period.about. the. forthcoming. renewal. of. his.insurance.contract.•. Annual.contract. If. the. insurance. policy. continues. for. successive.

periods. of. 12. months,. the. policyholder. is. entitled.to. terminate. the. contract. at. any. desired. moment,.observing.a.notice.period.of.one.month.

•. Multi-year.contract

If. the. contract. was. initially. a. multi-year. agreement,.when. the. contract. has. to. be. renewed,. the. insurer.may.give.the.policyholder.the.choice.of.continuing.the.insurance.policy.for.a.further.12.months,.or.for.the.same.multi-year.period.as.was.initially.agreed.

If.the.policyholder.wishes.to.renew.the.insurance.policy.for. a. contract. period. longer. than. 12. months,. he/she.must.confirm.this.choice.once.again.by.providing.two.signatures.. The. policyholder. cannot. terminate. multi-year. contracts.at.any.desired.moment..Termination.of.such.contracts.is.only.possible.with.effect.from.the.end.of.the.agreed.period,.with.a.statutory.notice.period.of.2.months.

Almost. all. Dutch. insurers. are. members. of. the. Dutch.Association.of.Insurers,.so.that.virtually.the.entire.Dutch.insurance.market.follows.this.code.of.conduct..The.code.applies. immediately. to. all. new. insurance. contracts.concluded.from.1.January.2010.onwards..For.existing.private.insurance.policies,.this.scheme.will.apply.when.the.contracts.are.renewed.after.1.March.2010.

5 This legislative proposal

is not expected to become

law until 1 July 2011.


27

11. RIAD Members and Associate Members

MEMBERS ON 1 JANUARY 2010AustriaD.A.S. Österreich Hernalser.Gürtel.17.1170.Wienwww.das.at..BelgiumD.A.S. s.a.Avenue.Lloyd.George.61000.Bruxelleswww.das.be

EUROMEX N.V.Prins.Boudewynlaan.452650.Edegemwww.euromex.be

Legibel G. I. E.Rue.Royale.551000.Bruxelleswww.legibel.be

Les Assurés Réunis SA (L.A.R.)Avenue.des.Arts.521000.Bruxelleswww.lar.be..Canada La Capitale Ass. Générales525,.boul..René-Lévesque.Est,.6e.étage,.CP.17100Québec.G1K.9E2.www.lacapitale.com..Czech RepublicD.A.S pojišťovna právní ochrany, a.sBenešovská.40101.00.Praha.10www.das.cz.

France Assistance Protection JuriqueLe.Neptune,1,.Rue.de.Galillée93195.Noisy.Le.Grand.Cedexwww.gmf.fr...

CFDP Assurances1,.Place.Francisque.Régaud69002.Lyonwww.cfdp.fr.

CIVIS90,.Avenue.de.Flandre75019.Pariswww.civis.fr.

E.P.J.7,.Boulevard.Haussmann75442.Paris.www.epj-assurances.com.

GROUPAMA PJ45,.Rue.de.la.Bienfaisance75008.Pariswww.groupama-pj.fr

JURIDICA1,.Place.Victorien.Sardou78166.Marly.Le.Roiwww.juridica.fr

LA DAS33.Rue.de.Sydney72045.Le.Mans.Cedexwww.ladas.fr

AVIVA Protectection Juridique (LA PAIX)15,.Rue.du.Moulin.Bailly92272.Bois.Colombeswww.la-paix.fr.

LE SOU MEDICAL10,.Court.du.Triangle.de.l’Arche.TSA.4010092919.La.Defencehttp://www.macsf.fr.

MATMUT PJ66,.Rue.de.Sotteville76039.Rouen.www.matmut.fr.

PACIFICA8-10.boulevard.Vaugirard75724.Paris.www.creditagricole.fr.

PROTEXIA9,.Boulevard.des.Italiens75002.Pariswww.agf.fr.

THEMIS (Macifilia)11,.Boulevard.Louis.Tardy79037.Niort.Cedexwww.cornhill.fr..

GermanyAUXILIA Rechtsschutz Versicherung AGUhlandstraße.780336.Münchenwww.auxilia.de.

Badische Rechtsschutzversicherung AGDurlacher.Allee.5676131.Karlsruhewww.bgv.de.


28

D.A.S. Deutscher Automobil Schutz,Allg. Rechtsschutz-Versicherungs-AGThomas-Dehler-Strasse.281728.Münchenwww.das.de.

DEVK Rechtsschutz-Versicherungs-AGRiehler.Straße.19050735.Kölnwww.devk.de.

DMB Rechtsschutz-Versicherung AGBonner.Strasse.32350968.Kölnwww.dmb-rechtsschutz.de

Hamburg-Mannheimer Rechtsschutzversicherungs-AGÜberseering.4522297.Hamburgwww.hamburg-mannheimer.de

ROLAND Rechtsschutz-Versicherung-AGDeutz-Kalker-Straße.4650679.Kölnwww.roland-rechtsschutz.de

Württembergische Versicherung AGGutenbergstraße.3070163.Stuttgartwww.wuerttembergische.de

Great BritainAlbany Assistance LimitedRemond.House.FernCourt.Bracken.HillBusiness.ParkPeterlee.CountryDurham.SR8.2RRwww.albanyassistance.co.uk

Amicus Legal LimitedThe.Old.Exchange.65.West.Stockwell.StreetColchester.Essex.CO1.1HEwww.amicuslegal.co.uk..

Angel Assistance LimitedPinsgate.Lower.Bristol.RoadBath.BA2.3DPwww.angelassist.co.uk.

BRIT Insurance55.BishopsgateLondon.EC2N.3ASwww.britinsurance.com.

CAPITA Insurance Services Limited40.Dukes.PlaceLondon.EC3A.7LPwww.capitais.co.uk.

D.A.S. Group UKQuay.Side,.Temple.BackBristol.BS1.6NHwww.das.co.uk.

Elite Insurance Company LtdNewton.Chambers.Newton.Business.Park.Isaac.Newton.Way.Grantham.Lincolnshire.NG31.9RTwww.elite-insurance.co.uk

FirstAssist Legal ProtectionMarshall’s.Court.Marshall’s.Road.Sutton.Surrey.SM1.4DUwww.firstassistlegal.co.uk

LAMP Insurance Company LimitedChester. House. Harlands. Road/Suite. G6A. Cornwall’s. Centre.GibraltarHaywards.Heath.WestSussex.RH16.1LRwww.lampinsurance.com

LawAssist Limited1.London.Road.Arundel.West.Sussex.BN18.9BHwww.lawassist.co.uk

MSL Legal Expenses LimitedNo..1.LakesideCheadle.Royal.Business.ParkCheadle.Cheshire.SK8.3GWwww.financialandlegal.co.uk

GreeceD.A.S. HellasL..Sygrou.4411742.Athenwww.das.gr..HungaryD.A.S. Jogvédelmi Biztositó Rt.Rákóczi.út.70-72..Postfach.91428.Budapestwww.das.hu..IrelandD.A.S. Group Ireland12,.Duke.Lane2.Dublin.www.das.ie..ItalyD.A.S. ItaliaVia.4.Novembre.2437126.Veronawww.das.it.

Europa Tutela GiudiziariaVia.Senigallia,.18/220161.Milanowww.europatutelagiudiziaria.it.


29

UCA AssicurazioneVia.S..Francesco.da.Paola.2210123.Torinowww.uca-assicurazione.com

LuxembourgD.A.S. Luxemburg Allg. Rechtsschutz-Versicherung S.A.3,.Rue.Thomas.Edison1445.Strassenwww.das.lu..NetherlandsD.A.S. RechtsbijstandKarspeldreef.151102.BB.Amsterdamwww.das.nl

SRK RechtsbijstandBredewater.12.2715.CA.Zoetermeerwww.srk.nl

Stichting Rechtsbijstand GezondheidszorgOrteliuslaan.750.3528.BB.Utrechtwww.vvaa.nl

PolandD.A.S. Towarzystwo Ubezpieczen Ochrony Prawnej S.A.ul..Wspolna.2500-519.Warszawawww.das.pl..SlovakiaD.A.S. SlovakiaŠumavská.34821.08.Bratislava.2www.das.sk..South AfricaLegalwise Legal Expenses Insurance Southern Africa LtdConstantia.Ridge.Office.Park.Block.B.764.Golf.Club.Terrace.Constantia.Kloof.1709.Roodepoort1715.Weltevredenparkwww.legalwise.co.za..SpainD.A.S. Internacional SpainPl..Dr..Letamendi.1.y.208007.Barcelonawww.das.es.

DEPSAGran.Via.de.les.Cortes.Catalanes.645-5°08010.Barcelonawww.depsa.es.

SwitzerlandCOOP.RechtsschutzEntfelderstrasse.25001.Aarauwww.cooprecht.ch.

D.A.S. Protection Juridique SAAvenue.de.Provence.821000.Lausanne.16www.das.ch.

FORTUNA Rechtsschutz-Versicherungs-GesellschaftSoodmattenstr..28134.Adliswil.1www.fortuna.ch.

ORIONCentralbahnstrasse.114002.Baselwww.orion.ch.

PROTEKTAMonbijoustrasse.68/Postfach3001.Bernwww.protekta.ch.

ASSOCIATE MEMBERS ON 1 JANUARY 2010AustraliaLegalwise 45.Ventnor.Avenue.West.Perth,.6005.WA

Canada DAS Legal Protection Limited.390.Bay.Street,.Suite.1610Toronto,.Ontario.M5H.2Y2www.das.ca..


30

12. Who’s Who?

PresidentPaul ASPLIN.(DAS.UK)[email protected].

Eric POUW (DAS.The.Netherlands)[email protected]..

Vice-PresidentEnrique AYUSO.(DESPA.Spain)[email protected].

Paul ASPLIN.(DAS.UK)[email protected].

Hervé LANCELOT (E.P.J.France)until.September.2008

BoardReinhold GLEICHMANN (Auxilia.Germany)[email protected].

Roberto GRASSO (DAS.Italy)[email protected].

Jan MOERLAND (DAS.Netherlands)[email protected]

Jean SELLICAERTS.(Euromex.Belgium)[email protected].

Secretary GeneralAntje [email protected].


31

II. ANNEXES

Solvency II Directive – Transposition of legal expenses insurance provisions

On. 17. December. 2009. Directive. 2009/138/EC. of.the. European. Parliament. and. of. the. Council. on. the.taking-up.and.pursuit.of.the.business.of.Insurance.and.Reinsurance.(Solvency.II).was.published.in.the.Official.Journal. L. 335. of. the. EU..As. from. 1. November. 2012.

this. new. framework. directive. will. apply. and. it. will.repeal. the.present.Legal.Expenses. Insurance.Directive.87/344/EC..The.changes.made. to. the.wording.do.not.introduce.material.changes.to.the.original.provisions.of.the.legal.expenses.insurance.directive.and.therefore.do.not. require. any. additional. transposition. measures. by.Member.States.

Overview of RIAD Positions

2009:•. Follow-up. Paper. concerning. the. Green. Paper. on.

Consumer.Collective.Redress.•. Review. of. Regulation. (EC). No. 44/2001. on.

Jurisdiction.and.the.Recognition.and.Enforcement.of.Judgments.in.civil.and.commercial.Matters.(‘Brussels.I’.Regulation)

•. Compensation. of. Victims. of. Cross-Border. Road.Traffic.Accidents.in.the.European.Union

•. Green.Paper.on.Consumer.Collective.Redress•. Consultation.on.ADR.in.Financial.Services.•. Harmonised. Methodology. for. the. Registration. and.

Reporting.of.Consumer.Complaints.and.Enquiries.2008:•. Damages.Actions.for.Breach.of.the.EC.Antitrust.Rules•. Benchmarks.of.Collective.Redress

Overview: transposition of Directive 87/344/EC by Directive 2009/138/EC

Directive 87/344/EC Directive 2009/138/EC

Article 1 Recitals 82 and 83

Article 2 Article 198

Article 3(1) Article 199

Article 3(2) FIRST SUBPARAGRAPH, FIRST SENTENCE Article 200(1) FIRST SUBPARAGRAPH

Article 3(2), points (a)-(c) Article 200(2)-(4)

Article 3(3) Article 200(1) SECOND SUBPARAGRAPH






Article 9 Article 16(2)


32

1

A N N U A L R E P O R T 2 0 0 6 - 2 0 0 7

International Association of Legal Expenses Insurance

Avenue Michel-Ange 7

B-1000 Brussels

Tel. +32 (0)2 732 36 28

Fax +32 (0)2 732 06 22

[email protected]

www.riad-online.eu

InternatIonal assocIatIon of legal expenses InsuranceInternatIonale VereInIgung der rechtsschutz-VersIcherung

assocIatIon InternatIonale de l’assurance de protectIon jurIdIque

r e p o r t - legal expenses insuranceriad-online.eu/fileadmin/documents/homepage/news_and...riad -...

Documents