This is just the tip of the dispute iceberg, as the vast majority of disputed claims get resolved by way of private settlement or in mediation or arbitration, meaning only a fraction go to court. Following any major loss event, policyholders depend on cash flow to manage through the an extraordinary vantage point into the culture and practice of the UK insurance market. This can help to understand the arguments put forward by insurers in rejection of a claim and offer valuable insights to legal practitioners and businesses on how best to avoid these pitfalls. In the last decade, the number of cases filed in the courts of England and Wales each year involving the top 20 insurers has doubled. Further, if we isolate only the claims that involve the insurers as defendants (i.e. which deal exclusively with the pursuit by policyholders of unpaid claims), between 2012 and 2016, there was an average of just under such 20 cases filed each year against these firms. Last year the figure was 72, and the year before it was 69 – representing a 280% surge in legal action against the leading insurers. post-event crisis, giving insurers leverage in reducing agreed settlements. Understanding the driving force behind this rapid increase in disputes necessitates a deeper look at wider trends in the insurance industry. The creation SPECIAL FEATURE 41 Research shows that companies are now three times as likely to have to sue their insurers in pursuit of a claim than they were just five years ago.
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