What Is Legal Expense Insurance?

Legal expense insurance refers to an insurance product that an insured person purchases from an insurance company in order to avoid the payment of attorney's fees and other related expenses after the failure of legal proceedings. Once the insured loses the case, the insurance company must pay attorney fees for it.

Legal Litigation Cost Insurance

Right!

Legal expense insurance refers to an insurance product that an insured person purchases from an insurance company in order to avoid the payment of attorney's fees and other related expenses after the failure of legal proceedings. Once the insured loses the case, the insurance company must pay attorney fees for it.

Legal litigation fee insurance can be a separate type of insurance or an additional insurance. For example, when an insurer has already purchased car insurance, in order to prevent the payment of legal fees involved in the lawsuit when an accident occurs, you can purchase this insurance. Types of insurance are attached.

The German ERGO insurance company is part of the Munich ReGroup and was established in 1997. One of the four subsidiaries, Victoria Insurance Group (VICTORIA), was established in 1853, and the remaining three subsidiaries were Hamburg-Mannheimer, DKV and DAS-in 1997, the four were formally married to form ERGO. Among them, DAS specializes in legal litigation cost insurance, and ranks first in Europe in this field.

In 2008, ERGO recorded a premium income of 917 million euros in legal litigation fee insurance, a year-on-year increase of 1%. It is worth noting that although this type of insurance accounts for a small proportion in the entire ERGO business system, its degree of internationalization is indeed the highest. The data shows that legal litigation expenses insurance premium income in Germany and international market premium income were 440 million euros and 477 million euros, respectively, accounting for 48% and 52% of the total premiums of this business, and the increase in the international market was 1.6%. 8 times the domestic market.

From ERGO's perspective, a major factor in the suitability of a market for such products is the predictability of lawyers' litigation costs.

For example, in Germany and many European countries, the cost is roughly measurable. Therefore, in some countries, such as the United States, because the entire litigation process may be very long and the cost is very large, the attorney's fees cannot be estimated. Therefore, it is difficult to push the insurance of legal costs.

In order to reduce risks and reduce claims, ERGO must be aware of the legal profession in the market that sells legal litigation cost insurance. For example, in the Netherlands, ERGO even hires 400 lawyers to handle litigation cases and pay them wages.

ERGO recommends the most suitable lawyers for the insured and provides them with solutions or recommendations so that they can win the lawsuit.

According to ERGO's plan, it will promote this business in South Korea and Canada in the future. In South Korea, ERGO has cooperated with the local bar association and has entered the stage of applying for a business license.

^[1]