ATE insurance for undisclosed commission claims
Temple Legal Protection is actively engaged in assessing ATE insurance requests for commercial cases involving undisclosed commissions. Following the Supreme Court’s decision in Hopcraft and others v Close Brothers and others, we are setting out below the types of cases we may support, and those we are not currently considering.
Our position reflects both the legal developments and our broader approach to risk. We remain committed to supporting meritorious litigation but will do so with careful assessment and appropriate underwriting controls.
Car finance commission claims
We will consider providing ATE insurance for motor finance claims involving undisclosed commissions, but not on a volume or speculative basis.
We are prepared to look at:
- Clearly assessed cases where the alleged unfairness goes beyond the typical features of discretionary commission arrangements (DCAs)
- Cases with strong supporting evidence, including high commissions relative to the cost of credit, exclusivity or misrepresentation about lender choice, and documented regulatory breaches
- Pilot schemes or small-scale groupings that allow for close management of claim quality
What we will not consider:
- High-volume schemes based on standardised templates without individual assessment
- Cases where the FCA redress scheme, once finalised, offers a suitable remedy
- Claims with weak or untested factual foundations
We expect law firms to be fully compliant with SRA and FCA guidance, particularly in relation to advertising, fee deductions and informed consumer choice.
SRA declaration now required for high-volume claims
The Solicitors Regulation Authority now requires firms pursuing high-volume claims to formally declare that they understand the relevant rules. This follows a review which identified widespread shortcomings in areas such as misleading marketing, unclear deductions from damages, and inadequate client screening. These issues directly inform our risk appetite. ATE cover will not be offered unless the firm can demonstrate active compliance and careful case selection.
Business energy commission claims
We are also reviewing the potential for ATE cover in business energy commission claims, which concern payments from energy suppliers to brokers. At this stage:
- We will consider proposals in principle, and we are open to agreeing terms, premium models and eligibility criteria in advance
- However, we would not expect any case to be put on risk before the Supreme Court hands down its judgment in Expert Tooling and Automation Ltd v Engie Power Ltd (expected autumn 2025)
The issues in these cases are distinct from car finance. Many claimants are businesses, not individuals, and commissions are often not entirely hidden. We anticipate that future litigation may turn on evidence of dishonesty or lack of informed consent – both of which will be central to our underwriting.
Other undisclosed commission claims
We may also be willing to consider other undisclosed commission cases involving financial products or commercial transactions, provided:
- The claims are individually assessed and supported by strong factual material
- There is a clear legal basis for liability and a reasonable prospect of recovery
- The commercial rationale for litigation is robust
We do not currently support claims that seek to expand the scope of fiduciary duties into general commercial relationships without clear precedent.
A considered and responsive approach
If you are looking to work with a commercial ATE insurer who understands the legal context and offers support grounded in practical experience, we would be pleased to discuss your proposals. We welcome early dialogue and can offer indicative terms subject to formal review.
To speak to our commercial underwriting team, please contact us using the form below or by calling 01483 577877.
