post laspo charles layfield pannone affinity date 02.05.2013

Post LASPO

Charles Layfield

Pannone Affinity

Date 02.05.2013

www.pannone.com

Referral fee ban - LASPO compliant models

• No fee paid• Hot key transfer• Operating a claims line• Provision of services• Regular fees• Collective marketing• Mixed legal services• Lien as to costs• ABS• Recommendation not a referral

Relationship with the SRA

• Engagement with Relationship Managers• Top 100 PI firms to be audited• Review of all pre & post LASPO TOBA’s• Examples will be made• OFR compliance – onus on the law• Comprehensive audit trail

CFA’s

• Law Society CFA• Blended CFA• Bespoke CFA• Key issues:Enforceability - Success fees & VAT - Previous CFA defective - Risk management & PII

ATE

• Options: No cover, ATE, portfolio protection or self-funding

• Self funding: Solvency II & SRA’s concerns • Risk management: Always recommend ATE & when?• Different approach based upon value of the claim?• Market information on ATE rates• Previously annual review of ATE satisfactory. Now?• Clear audit trail of the decision making processes

Success fees

• Where applicable, always 100%?• Risk assessments required?

OFR: Best funding advice

• “Enter into fee agreements that are legal, suitable for the clients needs and take account of the client’s best interests”.

• Best advice: DBA/CFA/LEI• BTE LEI checks – extent of?

Sucking eggs

• Average damages• Litigation rates• Average costs• Average settlement periods• Conversion rates

Cost budgeting

• Many DJ’s no experience of cost assessments

• DJ’s instructed to be strict on compliance• No room to hide behind counsel• Own MI is the best source of information • Support services - online tools emerging

Customer conversion

• Of greater importance than ever• Customers shopping around inevitable• Training of staff – knowledge &

emotional intelligence• Use of outsourced support

Not sponsored by Ann slide

• Online appointments• Reduced turnaround times - documents returned in

minutes• Same day return of documents now possible• Completion of a standard suite of documents, including

CNF• Different to online sign ups - client apathy/customer

journey• Gordon’s guarantee

Training

• Rules & protocols• Customer conversion• Emotional intelligence• Maximising damages

Tactics

• All new enquiries onto the portal?• Defendants offering to pay 100% of

compensation• P36 offers + 10% uplift on general damages• Pre-issue P36 offers no automatic entitlement

to costs pre-issue• Maximise litigation rates

Future of PI

• Reducing the Costs and Numbers of Whiplash claims consultation

• Ongoing ABS/new entrant activity• Consolidation: Exits & mergers for scale• Bank funding being withdrawn• A time bomb: WIP banks offer limited

protection

Future of PI

• Have scale or be niche• Be lean whatever you are• Differentiation & market positioning• Customer selection – service &

reputation?

Tel: 0161 909 4244

Email: charles.layfield@pannone.co.uk

www.pannone.com