Billi Cobley talks to Bryony Garlick, Associate Editor at Insurance Business magazine about the value of legal expenses amid soaring claims costs and tribunal backlogs.
With employment tribunal claims rising 54% and a record number of open caseloads, can clients afford not to have legal expenses? Read the full interview to find out why Legal Expenses should be a standalone cover necessity – not a policy add on.
MGAA Supplier Showcase: Regulatory, Legal & Compliance: best practices.
Regulatory change is a constant feature of insurance, home emergency and legal expenses markets.
For MGAs and coverholders operating in legal expenses and liability, the challenge is not simply keeping up with new rules. It is showing that those rules are understood, built into everyday processes and reflected in the way we deliver good outcomes for customers.
The most effective MGAs are therefore moving away from treating compliance as a periodic document-led compliance operating model. Instead, they are making it an integral part of how the business operates day to day.
Putting customers first
Customer clarity should be the bedrock of compliance.
The Consumer Duty has shifted the focus onto the delivery of good outcomes across products and services, price and value, consumer understanding and consumer support.
However, legal expenses products can be complex and difficult for customers to understand what’s covered and what’s not. Cover may depend on exclusions or conditions that only become evident when legal support is needed.
Liability and indemnity policies can raise similar questions around excesses and the difference between legal defence costs and compensation payments.
Good compliance practice should start with a simple question: does the product work in the way the customer expects? If they will get a nasty surprise in the event of an insured event or claim, then the answer is no.
MGAs should therefore look closely at whether the policy wording is clear, whether distributors are explaining the cover accurately and whether claims decisions are consistent with both the wording and the intended purpose of the product.
Keep a close eye on partners
An MGAs compliance framework is only as strong as the wider network of businesses supporting it.
Implementation should go beyond contractual assurances. Capacity providers need confidence that underwriting, claims handling, complaints, financial crime controls and data protection are all being managed properly.
This means agreeing responsibilities clearly from the outset, setting practical and measurable service standards.
Useful measures might include claims turnaround times, complaint levels, repudiation rates, policy cancellations, breaches of underwriting authority and overdue bordereaux.
Data driven decisions
Good-quality data is essential to support regulatory reporting, but it also helps MGAs identify unusual underwriting patterns, claims leakage and possible conduct concerns.
Claims and complaints data can be particularly revealing.
Reviewing the complaints alongside claims outcomes may show that the same issue is appearing repeatedly with a particular policy. A rise in disputes around one exclusion may suggest that the issue lies in the wording or sales journey rather than with customers failing to understand the policy.
Can AI deliver compliance fit for the future?
The proliferation of AI appears to be unstoppable in all areas of the financial and legal sector. Digital solutions will undoubtedly play a bigger role in helping businesses comply with evolving regulation.
Artificial intelligence and automation are increasingly being used to review documents, triage claims, identify unusual patterns and support underwriting decisions.
However, used without proper oversight, they can create new risks around accuracy, personal data, transparency and poor outcomes. Used well, these tools can improve speed and consistency.
But can AI truly put customers first? Can AI really deliver consumer understanding? Can it genuinely support vulnerable customers?
Technology can support professional judgement, but it should not replace human judgement. An MGA should still be able to explain how an underwriting or claims decision was reached – in person.
Best in class compliance
Attracting the right people into compliance roles is also becoming increasingly important.
As regulation, technology and distribution models grow more complex, MGAs need compliance professionals who can do more than interpret rules. They must be able to understand the commercial realities of the business, communicate clearly with colleagues and help turn regulatory expectations into practical action.
Offering compliance teams a visible role in strategy, product development and innovation can help attract high-calibre candidates and position the function as a business partner, rather than a final checkpoint.
Final thoughts on compliance best practice
A strong compliance framework is not measured by the length of a policy manual. It is measured by less claims rejections, less complaints and more loyal customers.
To deliver this, compliance teams need Continuing Professional Development.
They need to understand where – and what risks are emerging and how they impact customer segments. They should also be aware of how trends like tech-led compliance considerations and AI-based underwriting decisions are framing our industry.
CPD should therefore reflect real situations and compliance reviews should test what happens in practice – rather than simply checking that the right documents exist. Ongoing training should also look beyond insurance-specific regulations to consider how wider legal and commercial developments will impact the compliance function.
In a market built on trust, good compliance has to be positioned as more than a regulatory requirement. It must be a company mantra which focuses on good outcomes for customers.
By Chris Breakwell, Chief Risk Officer August 26
Q&A with Billi Cobley and MGAA CEO Michael Keating
PRESS RELEASE
Liability and Legal Expenses insurer Irwell is delighted to announce that it has received regulatory approval for Professional Indemnity Insurance, Personal Home Emergency and Landlord Home Emergency,and has also launched Family Legal Protection.
This is a significant milestone for Irwell and represents the culmination of developing strong partnerships and an unwavering commitment to new product development to support the evolving and complex needs of coverholders.
“The approval is a compelling endorsement of the quality of our products, our governance framework and the professionalism with which we operate,” said Giles Reading, CEO of Irwell.
“It also marks a major step in delivering our growth strategy by expanding our product offering and maintaining high client retention rates. I am very proud that the hard work and commitment of all the teams involved to get these new products over the line has been recognised,” Reading added.
In line with Irwell’s commitment to product innovation, the two Home Emergency products improve the customer experience by providing optional access to a qualified engineer through an online application. The engineer will assess the problem via a video call and attempt to diagnose and fix the customer’s emergency without the need for an onsite visit. Where a remote fix is not possible, an engineer will attend the property.
Meanwhile the Family Legal Protection product gives customers access to online mental health support and a counselling helpline provided by Health Assured.
Quality Care Group (QCG) the UK’s largest independent insurance broker to the care sector has appointed Irwell Insurance as its preferred legal expenses insurance partner, strengthening its proposition for care providers operating in an increasingly complex regulatory and employment landscape.
The decision reflects QCG’s ongoing commitment to working with specialist insurer partners that understand the specific risks facing the care sector, particularly around employment disputes, regulatory investigations and tribunal exposure.
Care businesses are experiencing growing pressure from workforce shortages, rising employment claims and increased regulatory scrutiny. Access to robust legal expenses cover, supported by specialist expertise, has become an essential part of protecting both service continuity and financial stability.
Darren Pollard, Group Managing Director at Quality Care Group, said: “Selecting the right legal expenses partner is critical for our clients. Irwell demonstrated a deep understanding of the care sector alongside strong underwriting discipline and a clear commitment to long term partnership. This appointment gives our clients added confidence that their legal risks are supported by a specialist insurer with proven financial strength.”
Irwell is a leading legal expenses and liability insurer with a strong track record of underwriting performance. AM Best has upgraded its Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) reflecting Irwell’s balance sheet strength and good earnings retention, providing additional reassurance for brokers and policyholders alike.
Giles Reading, Chief Executive Officer at Irwell Insurance, said: “We are pleased to be working with Quality Care Group as its preferred legal expenses partner. QCG has a strong reputation within the care sector and a clear focus on supporting clients through complex risk challenges. We look forward to working closely together to deliver meaningful protection for care providers.”
The partnership forms part of QCG’s wider strategy to offer care businesses access to specialist insurance solutions that reflect the realities of modern care delivery.
For the AM Best’s Credit Rating, access www.ambest.com
Your questions answered about why, when and who needs legal expenses protection.
There is a misconception that businesses do not have to pay for a HSE inspection.
But if the Health and Safety Executive (HSE) visit your workplace and find that you are in material breach of health and safety law, you will have to pay for the time it takes to identify what is wrong and to help you put things right.
This is called a fee for intervention (FFI).
However, if the findings reveal that you haven’t broken the law, you won’t be charged for the inspection.
What is a material breach?
A material breach is an issue which an inspector considers serious enough that they need to formally write to the business requiring action to be taken.
If the inspector gives you a notification of contravention (NoC) after their visit, you’ll have to pay a fee.
Where an inspector simply gives you advice, either verbal or written, you won’t have to pay for this advice
Who FFI applies to
FFI applies to dutyholders where HSE is the enforcing authority including employers, self-employed who put others at risk, public and limited companies, general, limited and limited liability partnerships and public bodies.
How much does an FFI cost?
The HSE Fee for Intervention (FFI) hourly rate is currently £183. The total cost to a business varies significantly based on the nature, duration and complexity of the investigation and the size of the company.
Your fee may include time:
The fee can vary depending on:
The average cost is around £700 but can be up to £1,500 for cases involving enforcement notices.
Prevention is better than cure
Our liability policies include a health and safety review tailored to the unique risks of each business we insure.
SafeCheck which only takes around an hour, reviews what you are doing well and what needs improving – so that your business can achieve HSE compliance.
Minimise business risk in 4 simple steps
Download our AM Best Review 2026
Leading legal expenses and liability insurer Irwell Insurance is delighted to announce that AM Best has upgraded its Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good).
The Financial Strength Rating (FSR) of B++ (Good) was also affirmed.
The upgrading of the Long-Term ICR reflects improvements to Irwell’s balance sheet strength, notably through strengthened risk-adjusted capitalisation, underpinned by good earnings retention over recent years.
“We are delighted that Irwell’s strong balance sheet and positive operating performance has been recognised by AM Best,” said Giles Reading, CEO of Irwell.
“Our impressive results stem from high client retention rates and an unwavering commitment to developing innovative, market-leading products that align with the evolving liability and legal expenses markets.
“This is a positive start to 2026 for Irwell and all our partners. It provides us with a platform to grow our product portfolio to satisfy evolving commercial risks and the complex needs of our coverholders,” Reading added.
Manchester based Irwell has a track record of positive operating performance, reporting a five-year (FY21-25) weighted average return on equity ratio of 14%. Underwriting profits are the main driver of earnings, with the company reporting a five-year weighted average combined ratio of 84%.
AM Best expects Irwell’s portfolio to grow over the medium term, supported by the expansion of its business through new and existing product lines.
For the Best’s Credit Rating, access www.ambest.com
Counting the cost of a HSE Inspection
There is a misconception that businesses do not have to pay for a HSE inspection.
But if the Health and Safety Executive (HSE) visit your workplace and find that you are in material breach of health and safety law, you will have to pay for the time it takes to identify what is wrong and to help you put things right.
This is called a fee for intervention (FFI).
However, if the findings reveal that you haven’t broken the law, you won’t be charged for the inspection.
What is a material breach?
A material breach is an issue which an inspector considers serious enough that they need to formally write to the business requiring action to be taken.
If the inspector gives you a notification of contravention (NoC) after their visit, you’ll have to pay a fee.
Where an inspector simply gives you advice, either verbal or written, you won’t have to pay for this advice
Who FFI applies to
FFI applies to dutyholders where HSE is the enforcing authority including employers, self-employed who put others at risk, public and limited companies, general, limited and limited liability partnerships and public bodies.
How much does an FFI cost?
The HSE Fee for Intervention (FFI) hourly rate is currently £183. The total cost to a business varies significantly based on the nature, duration and complexity of the investigation and the size of the company.
Your fee may include time:
The fee can vary depending on:
The average cost is around £700 but can be up to £1,500 for cases involving enforcement notices.
Prevention is better than cure
Our liability policies include a health and safety review tailored to the unique risks of each business we insure.
SafeCheck which only takes around an hour, reviews what you are doing well and what needs improving – so that your business can achieve HSE compliance.
Minimise business risk in 4 simple steps
