post laspo charles layfield pannone affinity date 02.05.2013
TRANSCRIPT
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?
