The legal expenses insurance arm of industry giant Allianz has launched a solution supporting specialist personal injury and clinical negligence law firms.
Allianz Legal Protection’s (ALP) new initiative allows law firms to receive an immediate benefit from the insurer’s after-the-event insurance (ATE) policy, alleviating the cash flow burden that firms face due to disbursement expenditure.
Unlike funding arrangements, the new ALP solution is not a loan nor subjected to interest or drawdown fees. Instead, it simply pays disbursements as incurred rather than at case conclusion.
According to ALP, this makes the model easier to explain to clients without the need and complexity of getting customers to enter into a consumer credit agreement.
The company has also launched its “paid as incurred” model, which enables law firms to make an early claim for costs incurred on disbursements.
“Paying disbursements as incurred was a natural evolution in our ATE product offering, especially as we’re starting to see law firms coming under increased cash flow pressure as a result of fixed costs and higher court fees,” said Steve Rowley, ALP business development manager.
“This is not new insurance, just a different approach to working with specialist law firms that enables them to benefit and grow by releasing cash otherwise tied up in their work in progress,” he added.
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