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Marshall Hall,
Surely a policy of knowingly undersettling cases to generate profits is dishonest? I know the fraud of PPI and other financial productsales was re-labelled "mis-selling", but fraud it was!
Evidence shouldn't be too hard to get. The case handler would be personally liable, and no doubt would seek to avoid that by confirming, if it be the case, that the firm policy was undersettlement. A number of such statements should be sufficient to convince a judge. And if the firm has collapsed, it cannot defend, and the liquidator won't because there won't be enough money. The insurers will disclaim liability... and have the money to do so and defend.
And that leaves the Compensation Fund....