Insurance 2023 - the year ahead
Awareness, concern and action regarding PFAS will increase
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亚太地区, 北美洲, 英国和欧洲
Insurance 2023 - the year ahead
2023 will see growth in the number of coverage disputes – in Hong Kong, contingency fees will be made available and Singapore will see new regulations bed in
In Hong Kong, champerty and maintenance remain criminal offences – that is, funding litigation to share in the damages awarded. However, in part to increase “access to justice”, third-party funding for arbitration cases is permitted since February 2019; and contingency fee arrangements between HK lawyers and their clients in arbitrations is permissible since 16 December 2022, under the Outcome Related Fee Structures reform.
In Singapore, contracts involving champerty and maintenance continue to be contrary to public policy or are illegal, unless they fall under three permitted categories:
Many Hong Kong and Singapore insurance policies – particularly for financial lines cover – use arbitration rather than litigation as dispute resolution mechanism. As a result, if the decision does not favour the insureds, they cannot challenge that outcome, but can seek third-party funding, or agree contingent fee arrangements with their lawyers.
These developments will reduce an insured’s cost of challenging insurer’s coverage determinations, which will lead in 2023 to a rise in coverage challenges in the insurance industry via arbitration.
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