Insurance Litigation Apppointed to Top Global Board
A top insurance lawyer with Duncan Cotterill's Wellington
office, Mr Scragg has
recently retired president of the New Zealand Insurance Law Association
In an exclusive interview with legal website LawFuel, he spoke about the development of litigation funders in the New Zealand market, saying it was something insurance companies are watching closely because the insurers will be "on the receiving end of funded claims."
Mr Scragg said that there is some nervousness in the insurance market where there could be a perception that some funders are simply out there looking for and potentially stirring up litigation to fund, as an investment opportunity.
He concedes however that
funders have a role to play in the market with a particular
focus area for many funders being the idenfification of
potential class actions which without third party funding,
may not otherwise find
their way to Court.
Mr Scragg says funded claims, and class actions, are a real growth area with New Zealand so far having largely avoided some of the some of the major systemic issues in the financial markets and elsewhere that have lead to class action claims overseas.
“I now think we are seeing a perfect storm for the insurance market in New Zealand: the potential for a significant increase in the number of litigated claims, and the size of those claims, due to the presence of litigation funders and people being more prepared to take action in the Courts to pursue their rights, including through class actions.” major systemic issues in the financial markets and elsewhere that have lead to class action claims overseas"
He also spoke about rising costs of professional
indemnity insurance and other
key issues facing lawyers and others in New Zealand