Initial conversation: Solicitors should raise LEI
Legal expenses insurance (LEI) “should always be included in the initial conversation” between solicitor and client, the Law Society has said.
The society also said it was developing guidance for consumers on LEI, to provide a “trusted source of neutral, impartial information”.
The Legal Ombudsman was “clear” that solicitors should discuss LEI with clients, and the SRA codes of conduct expected solicitors to ensure clients were in a position to make informed decisions about their options and costs, but that guidance “did not provide detail on what such conversations should entail”.
To fill the gap, the society is working on an update to its practice note on client information requirements to make “explicit reference” to LEI and provide “relevant information on solicitors’ obligations to discuss LEI” with their clients.
“This should always be included in the initial conversation between the solicitor and their prospective client, to ensure the client is aware of all potential options available to them for funding their legal case if it has merit.”
Past research showed that most solicitors (57%) only communicated the potential availability of LEI to clients in writing, while 15% said they did not raise it unless clients asked. A quarter discussed it verbally.
The review of the society’s position on LEI was done as part of its 21st Century Justice project, the headlines of which were published earlier this week.
The consumer guidance will draw on insights from an industry information sharing group convened by the Law Society jointly with the Association of Consumer Support Organisations (ACSO).
“This aims to provide a trusted source of neutral, impartial information on how someone might go about becoming aware of any potential LEI policy they may have, and how that policy could potentially help them to access justice.
“The guidance signposts to other trusted sources and draws attention to the potential utility of LEI legal helplines which can serve as an invaluable source of information to a consumer who may not be sure of which steps to take when they encounter an issue.”
The society said many consumers were unaware that they had a LEI policy.
“An important first step is therefore to help raise awareness among those who already have LEI, to ensure people are informed of all the options available to them.”
However, the society said it did not propose to advocate for or against the use of LEI more generally, “partially due to the potential that significant increases or decreases in purchase of LEI products could lead to a change in the availability and cost of these policies”.
However, it recommended that lawyers “should contribute to wider efforts to increase awareness and understanding of before-the-event legal expenses insurance products among existing policyholders, alongside the insurance industry, consumer support organisations and others”.
Government, the Legal Services Board, ACSO and most recently the Civil Justice Council in its review of litigation funding have all called for greater focus on and uptake of LEI.
The Legal Services Board’s 10-year strategy for the sector, published in 2021, said one ambition for 2031 was that “most households have an LEI policy or other mechanisms enabling them to access a wide range of legal services free at the point of need”.
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