The inevitable consequence is that it only occurs when proceedings are issued. We do not run many cases to trial and thus the risk is actually low. The matter needs to be resolved by the higher Courts and not in some strange County Court. Level of Premiums - I do not believe we should pay for the start up costs or share capital. A reasonable premium should be recovered to reflect the risk.
Underwriters manage with very tight margins.
AEI want a large margin. If ordered by the Court, we will pay but the Court should be forced to determine what is reasonable. If cash flow is a major issue, in the vast majority of cases we will be paying out and will look at interim payments. But there is a whole raft where there is no risk - rear end shunts, passenger claims etc. We also see other insurance policies - legal expense policies and the claimant ought to be encouraged to use that.