The Law Society is working with the Solicitors Regulation Authority and insurers to agree a ‘plain language’ definition of unbundled services that will ensure the cost of insuring firms that offer them is not shouldered by all solicitors.
Publishing a 21st Century Justice blueprint this week, Chancery Lane said the proportion of consumers choosing to use an unbundled service has increased to an estimated 19%. But while there has been appetite from regulators and the previous government to position unbundled services as an access-to-justice solution, research has revealed confusion about what unbundled services entail. Professional indemnity insurers are also unsure if the firms they cover provide unbundled services and how to price the risks.
‘The costs of insuring unbundled work are therefore potentially being borne by solicitors across the profession, rather than those firms that are offering unbundled services,’ the Society said.
As a result of this research, the Society has been working with the SRA and International Underwriting Association on a ‘plain language’ definition of unbundled services. The definition, expected to be agreed this summer, ‘could be used by participating PII insurers in their proposal forms, to identify firms that provide unbundled services, and price their policies accordingly’.
Other proposals in the blueprint to improve access to the civil justice system include an AI-powered ‘NHS 111’ service, which would save the government £72m over five years, and a simpler redress landscape.
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