The government's w hite paper on legal aid suggests radical ideas for the future funding of litigation.

It proposes much greater co-operation and joint ventures between the public and private sector and, in particular, the closer involvement of the insurance industry.Companies such as Litigation Protection Ltd and DAS Legal Expenses have been in discussions with the Lord Chancellor's Department (LCD) and the Legal Aid Board (LAB) to explore opportunities and to draw up plans for establishing the key areas where insurance could complement, combine with or replace funding currently provided by the public sector.

This process has already begun because, much to the surprise of officials, the legal expenses insurance industry is already funding a much higher percentage of cases than had been anticipated.

Access to justice for those who are not entitled to legal aid or those who are only partially entitled has already considerably improved.

If this initiative was to be totally developed and some of the restrictions or constraints removed, much more could be achieved.The growing independence and increasing expectations of consumers - often fuelled by government initiatives such as citizens charters - are creating a more litigious society.In approaching change, the LCD regards nothing as sacrosanct and insurers have found this dynamic approach refreshing.

It appears to offer a considerable opportunity, not only for the industry but also for the profession.

Some of the ideas under discussion have been radical, whilst others are more a matter of interpretation or administration.

One possibility is the erosion or removal of the barriers between legal aid, conditional fees and legal expenses insurance.

At present these are mutually exclusive.

However, they could be incorporated into an 'assistance cocktail' where the ingredients would be mixed to meet the needs and means of the client on a basis to be decided by the client's solicitor.

Another suggestion has been the extension of conditional fee agreements and complementary insurance packages.

This might offer a more appropriate and cost-effective solution than contributory legal aid.

It has also been suggested that, for medical negligence cases, legal aid should be available more widely in the initial investigative stages.

Once 'good prospects' had been established, the case could be transferred to a conditional fee agreement with the insurance premiums being paid for by money available through legal aid.

This would achieve discipline and realism in the selection of cases pursued, as well as a definitive position for the client.

The LCD considered introducing a fund from which litigants could borrow money.

However, this idea was dropped because ministers thought it could be better provided by private enterprise.

Litigation Protection Ltd is currently attracting funding for a litigation investment fund, which it hopes will be operational from around the beginning of October.

Champerty and maintenance present a problem to any lender advancing money to fund an action, but this is a problem that the LCD is prepared to look at.The hallowed expression 'against the public interest' can often be more accurately interpreted as being 'against my client's interest', much to the frustration of the inadequately funded plaintiff.In relation to criminal legal aid, it does not seem right that the legal aid fund should bear the burden of defending employees in respect of offences arising out of their work.

Instead, the employer could be required to insure against this risk, which would relieve the public purse.The insurance industry, and particularly those specialising in legal expenses and litigation insurance, must develop further.

A more strategic vision and a creative approach will be required, together with a willingness to co-operate and allow insurance products to be used as part of the 'cocktail', alongside other competing insurers'- products.

Policy wordings need to be improved and the definition of 'prospects of success' needs to be more capable of independent assessment.The Lord Chancellor has thrown down the gauntlet to the profession and to insurers.

It must not be ignored or timorously picked up - all problems are capable of a solution and the 'private finance initiative' in respect of legal aid has very good prospects of success.