§ 34. Mr. Laurence RobertsonWhat discussions he has had with the insurance industry concerning the introduction of conditional fee arrangements. [18012]
§ Mr. HoonDiscussions with the insurance industry have taken place over a number of years on various matters, including conditional fees. Within the last month, my right hon. and learned Friend the Lord Chancellor and officials have held six meetings with insurers to discuss conditional fees. On 2 December, my right hon. and learned Friend had discussions with a delegation from the insurance industry, comprising seven insurers, underwriters and brokers and three officials of the Association of British Insurers. It was agreed that a working group of representatives of the industry and officials would be established, to develop a co-ordinated approach to the proposed reforms.
§ Mr. RobertsonCan the Minister confirm that a significant number of companies will be involved in taking on the arrangements, or are small companies especially likely to find it very difficult to get cover because of insurance companies' lack of interest in the scheme?
§ Mr. HoonOne of the great strengths of the British insurance industry is the fact that it comprises very large companies and very small underwriters. One of the benefits that they bring to the insurance industry in the United Kingdom is their ability to tailor insurance policies for specific types of consumer. I expect that, in the case of legal insurance, there will be large companies that provide large-scale insurance for the bigger firms of solicitors and small-scale operators who will be very interested in establishing insurance cover for small high street solicitors.
§ Mr. GarnierIn the week that the Government are undermining disability living allowance, the independent living fund, family credit and single-parent benefits, 664 will the Minister do something to protect the needy from his legal aid reforms? Without affordable insurance to back conditional fee arrangements, the poor will be denied access to justice and his reforms will bring him and the Government into even further disrepute. Can he list just five insurance companies that are prepared to back his reforms—and to do so in public?
§ Mr. HoonIt is a bit rich for the hon. and learned Gentleman to protest about these matters; I do not recall ever hearing him protest about policies that were developed largely in the time when the Government he supported were in power. I am surprised that he was not protesting then, and I am still more surprised to hear him protest today. We are consulting widely with the insurance industry; I have told him the range of meetings that have taken place. Those discussions will continue, and we shall develop proposals accordingly.