THE causation SPECIALISTS
Horwich Farrelly’s causation team has been at the forefront of the battle against LVI claims since 1999, and has since grown into the largest and most experienced team in the insurance industry. Put simply, we are the market leaders and we do things differently. Whilst the judiciary has become less tolerant of spurious claims, LVI cases are still very difficult to win. Claimant solicitors are alive to the typical LVI arguments and, in some cases, they have set up specialist LVI teams to deal with these claims. The effect of this, is that it is a far tougher environment than it used to be. That said, the strategies we have developed in this area have enabled us to continually outperform ourselves year on year.
Therefore our clients often benefit from making a full recovery of costs when defending these type of claims. As a result of having Horwich Farrelly in their corner, our clients also reap the benefits pre-litigation by typically seeing a reduction of up to 10% in claims frequency, which allows then to take a more risk-tolerant stance when it comes to litigation. Claims Farming/Late Intimation Claims.
Many of our clients are still reporting increases in the number of farmed claims they receive. Most of these claims have little substance, yet they add to the operating costs and, consequently, the premiums charged to honest policyholders. We therefore believe it imperative you have strategies in place to identify and defend farmed claims, otherwise you will be targeted by unscrupulous claims management companies. Horwich Farrelly’s award winning Late Intimation strategies are based on a straightforward premise – the longer you wait to present your claim, the more suspicious it becomes – and we are equipped to run causation arguments on any claim that has been presented 30 days or more after the index accident.
Our bespoke strategies reflect the risk appetite of our clients and their capacity to handle claims in-house. That said, all our clients report significant reductions in claims frequency – with one client reporting a 20% reduction in claims and an 80% pre-lit success rate – culminating in savings of more than £10million in the first year.
Our approach to potentially staged accidents is to robustly defend – but only where sensible to do so. We take the view that the worst possible service for any client is to spend a long time investigating a case, building up significant costs and delay, only to settle it close to trial. Many of our clients have confirmed that this has been a significant concern for them in terms of work done by other firms.
The key is in the detail – one small discrepancy can defeat a defence. We undertake prompt evidence gathering to identify significant concerns with the parties’ evidence, both pre and post-accident, using experienced assessors and forensic engineers as appropriate. Cases are subject to constant supervisory review.
We ensure that our opponents understand that we make the right decisions and make them early. Consequently they know that once we have considered a case and have decided not to make an offer we will be going to trial if required. “Throwing in the towel” is not our style.
As a result, when we do go to trial we have a strong record of success. The nature of these cases means that many fraudsters do not wish to proceed to a final hearing in case an adverse finding precludes them from making fictitious claims in the future. We therefore see a high number of discontinuances either just before trial or at the doors of the court.