US life insurers seek change in China

Asia

London market insurer Hiscox has expressed concern about the increase in the cost of insurance claims paid out to publishers who have been sued by claimants backed by a conditional fee agreement (CFA). Historically only available for personal injury claims, CFAs were extended to media law in 2000 and were introduced to provide access to justice for those that would not otherwise be able to sue a publisher. Andrew Sellers, UK & International TMT claims manager at Hiscox, said that making justice affordable to all was a well intentioned sentiment at a time when defamation was viewed as the preserve of the wealthy. “However, the reality is that the wealthy who can easily afford to sue, are entering into CFA’s. The CFA system today in terms of publication cases in the media is inherently flawed. The system is wide open to abuse and has created an excessive cost burden that is interfering with publishers’ rights under Article 10 (Freedom of Expression) under the European Union’s Human Rights regulations.” He added that as the cost of CFA backed cases increases, publishers, especially smaller ones, should have sufficient insurance cover to ensure that they are protected. “The system is being abused and the playing field is now too heavily skewed in favour of the claimants. The imbalance needs to be redressed,” Mr Sellers explained. He was speaking at a London media and entertainment law conference organised by 5RB, barristers in media and entertainment law.