Lockton Launches Singapore`s First after-the-Event Insurance Product

SINGAPORE--(Business Wire)--
Lockton Companies (Singapore) Pte Ltd has launched the first After-the- Event
Insurance product (ATE) in Singapore, which will be underwritten by First
Capital Insurance Limited.

ATE Insurance is a type of legal expenses insurance policy that provides cover
for the costs incurred in the pursuit or defence of litigation. The product
allows litigants (individuals, corporate or unincorporated entities) to minimize
the uncertainties and financial risk.

The policy is purchased after a legal dispute has arisen (which is why it is
called "After-the-Event Insurance"). This type of insurance has been available
in the UK for more than a decade and has enabled tens of thousands of litigants
to offset a considerable portion of their litigation costs risk. Tony Mitchell,
President of Lockton Singapore said: "Litigation is a costly business. In fact,
potential legal costs can be so daunting that they prevent a financially
stressed party from pursuing or defending his legal rights. ATE Insurance exists
to provide access to justice for cases with genuine merit. The current economic
and financial environment is likely to spawn many such cases".

Typically, a policy will cover an insured`s liability for his opponent`s legal
costs should the case fail. It will also cover his disbursements. It is also
possible to obtain some cover for his solicitor`s fees. As the policy exists to
indemnify legal costs, it will not cover any other liabilities which may arise
from the litigation.

Types of cases that are typical for this insurance are: commercial litigation,
professional negligence cases, insolvency cases and civil litigation cases.

Mr. Mitchell added: "There are two other unique features of this product:
Insured and Deferred Premiums."

"Premiums are usually insured under the policy. If an insured pays for a policy
and his suit is unsuccessful, not only do the insurers pay the insured`s adverse
party & party costs, they also reimburse the insured for the cost of the
premium."

Usually the insured has a nominal premium to pay upfront and nothing further in
the event that the case is unsuccessful. The insured is only liable to pay the
full premium in the event that the case succeeds.

Premiums are individually assessed for each case depending on the financial
exposure faced by the insurers and their view of the prospects of success.

Mr. Mitchell explained further: "Because insurers recognize that early
settlements will often occur, there are normally staged discounts in the
premium. Like the Courts, the insurers wish to encourage early mediation or
resolution of a case where it is in the interest of the parties."

In response to questions of whether such insurance would serve to encourage
litigation, Mr. Mitchell replied: "Despite the attractiveness of this form of
insurance for litigants, its availability has not resulted in any significant
increase in litigation in the UK despite a 10-year existence. One principal
reason is that at the end of the day, it is the insurer who will carry the
exposure and they are naturally commercially selective as to which types of
cases they choose to support."

Lockton Singapore will be working with Law Firms on applications for ATE
insurance.

About Lockton

More than 3,800 professionals at Lockton provide more than 15,000 clients around
the world with insurance, benefits, surety and risk management services,
offering an uncommon level of client service. From its founding in 1966 in
Kansas City, Missouri, USA, Lockton has grown to become the 10th largest
insurance broker in the world. You can learn more at www.lockton.com.

At Lockton, we are passionate about serving our clients, developing our people
and giving back to our communities. Lockton Companies (Singapore) Pte Ltd is
licensed and regulated by the Monetary Authority of Singapore.

For more information, please visit: www.lockton.com/asia

Lockton
Tony Mitchell
(65) 6326 9211 (Direct)
Tony.Mitchell@asia.lockton.com
K. Sarogenei
(65) 6326 9216 (Direct)
Sarogenei.K@asia.lockton.com

Copyright Business Wire 2009