Claimant solicitors have been well aware of their duty to make enquiries with a client concerning the existence of before-the-event legal expenses insurance before entering into a conditional fee agreement. However, these enquiries are resulting in many solicitors losing clients to solicitors appointed by the insurance industry.

There has been a recent trend in legal expenses insurers writing direct to the client following a request for details of before-the-event insurance from the client's solicitors. These letters have been written in terms suggesting that there would be no benefit in continuing with the existing solicitor and that it is in the client's interest to appoint a solicitor from their panels.


It appears that the insurance industry is now trying to take control of solicitors on behalf of claimants, as well as defendants.


It is interesting that insurance companies usually try to avoid claims being made on a policy. However, legal expenses insurers are actively encouraging clients to use the legal expenses insurance to instruct a panel solicitor. No doubt the panel solicitor pays a referral fee in respect of this.


This is a trend that has also been undertaken by trade unions recently in attempting to poach clients. Unless panel solicitors are used, then funding will not be given to solicitors at any stage, even after proceedings have been issued (in contrast to before-the-event insurance).


Therefore, the client is left with either funding the case on a private basis, finding a solicitor who will act without a success fee, or alternatively, instructing the panel solicitors.


This appears to be another nail in the coffin of the high street solicitor. Will there ever be a day when clients can simply instruct a solicitor of their choice without there being a 'kickback' to anybody outside the profession.


Anthony Hunt, Bartlett & Son, Liverpool