Commercial Third party Litigation Funding Allianz ProzessFinanz GmbH London, 22 January 2008

2 Litigation Funding is Allianz ProzessFinanz GmbH... not banking … investing in claims, and trying to generate the best possible outcome for the client.... not insurance

3 Particuliarities of the UK funding market  The legal system is very efficient  Proceedings are extremely expensive  Public policy issues

4 Efficiency  Case Management Conferences: useful tool  Average duration of 1 – 2 years to judgement  Appeal proceedings are even quicker (6 – 12 months)‏  Use of mediation increases probability of early settlement  Trial costs cause last minute settlements

5 Costs We estimate the costs to be 5-10 times higher in the UK than in Germany, Switzerland and Austria, due to: Duplication of costs (solicitors/barristers, party-appointed experts)‏ Disclosure Interlocutory applications

6 Champerty and maintenance Political backing to reduce restrictions Less involvement by the funder Regulation may be on the way

7 Suitability of proceedings for funding UK Fast Expensive Complicated costs (assessment) Suitable for high value cases Efficient (CMC) Adaptable/flexible (ATE, CFA) Germany, Switzerland, Austria Slow Inexpensive Set-fee regime (simple costs)‏ Suitable for small claims as well Inefficient (step by step)‏ No need