Presentar el escrito a que se hace referencia en el inciso C) del numeral 4 de estas Bases, en forma individual por los integrantes de la proposición conjunta.

Of those who took part in the quantitative study, most are able to give an explanation of what LEI is (64%) but just over two-fifths (43%) feel they know nothing or just a little about LEI - this is higher for some vulnerable groups. This indicates there is face value understanding of what LEI is but further, more detailed knowledge is not really known. This is reinforced by findings from the focus groups and depth interviews which indicate that product awareness of having LEI was high, in that respondents across all socio-economic groups are aware they had it as an ‘add-on’ to another product.

In particular, awareness of LEI with car insurance is high with many consumers having remembered opting for it at purchase. However, awareness of LEI with household insurance is much lower.

‘cause when I’ve applied for house insurance I don’t think they’ve ever mentioned it, unless it’s in the small print and I’ve never noticed it’ Newcastle

‘I mean I’ve got insurance on my household but it’s got nowt to do with this’

Leeds

‘I wouldn’t have connected the two (LEI and household insurance) – it kind of doesn’t make sense so you don’t think about it’

London

Although awareness of the product is high, many referred to it as ‘legal expenses cover’ or ‘legal protection’ rather than legal expenses insurance.

Awareness of standalone products is very low indeed for those who did an interview or took part in a group, with many never having heard of it as a purchase option. This is contrasted with 76% of the quantitative respondents saying they did think you could get LEI as a standalone option. Additionally, in the groups, awareness of LEI as a feature of packaged bank accounts is high amongst those with these accounts and there is some awareness from non-account holders through TV advertising.

Most believe that car LEI just covers car issues.

‘I thought it just covered you if somebody sues you, so if you’re like in the wrong in an accident then you need expenses claim cover to sort you out’

Newcastle

And therefore assume household LEI just covers household issues rather than ‘personal issues’. Many assume that you would need personal indemnity insurance to benefit from employment legal costs.

‘My brother’s got that – he’s a taxi driver – but isn’t that personal indemnity insurance?’

Newcastle

A quarter of all respondents (26%) have wanted to take legal action but were put off by the cost with 60% then dropping the issue and just over a tenth of those who have LEI (12%) have thought about making a claim (rising for some vulnerable groups) but didn’t contact the insurance company. This firstly reinforces the need for such a product but also indicates there should be clarity and greater awareness regarding its purpose as it appears it is being underused.

The majority of people are happy with the average cost when it was presented (63% think it is about right), but knowledge of their personal cost of such policies is not high, again demonstrating a lack of engagement and product knowledge. However, this may be explained by the general belief that LEI was a reasonably priced product and therefore was not a ‘high risk’ purchase and/or one that required much consideration. Levels of cover are not well known with online participants sometimes confusing this with levels of compensation. Although people are not clear on levels of cover, opinions of levels of cover show that just over three-fifths (62%) believe them to be adequate but a large minority (just over one-fifth – 22%) do not know or aren’t sure.

Similarly, during discussions, participants were unable to quote level of cover and often confuse this with compensation levels. Note quotes below are teledepth participants – all of whom had made or tried to made a claim.

‘Without looking at the policy, no, not offhand but I would imagine it’s something like up to a million pounds or something.’

Teledepth 3

‘It’s about one and half million’ Teledepth 7

‘… off the top of my head, normally up to a million pounds I think it is’ Teledepth 6

Online channels are the most popular method of acquiring LEI which would suggest an audience who would be open to engage through this channel.

People appear to have LEI by selection with minimal effort ie with most having it attached to some other form of insurance (motor or home). The most cited reason for having it was ‘because it was included’. This would suggest a level of passivity in ownership.

‘I know when it come up for renewal, it automatically does it with the legal expenses cover in…’

Leeds

Although many feel that in the last few years, LEI has been included automatically in quotes and that you needed to positively deselect the tick box rather than choose to tick it. This is definitely thought to be of benefit to the consumer as it could be easy to forget to select it as an add-on and then suffer the consequences if you did need legal services.

‘Hearing these stories tonight I’m worried I haven’t got it – I need to check at home – I guess it’s easy to forget to say yes or tick the box’ London

‘..it’s up to you to remove it rather than the opposite way around…’ Teledepth 10

‘… I don’t know why they don’t just put it on the insurance documents anyway, you know, like without telling you...just put it on anyway as a compulsory, I mean if it was compulsory, you know, I think that would be much better for an extra 25 quid on top of your insurance policy.’

Teledepth 7

Despite low product understanding, most feel they would always opt for LEI if given a choice at policy purchase since society was now more litigation-driven and whilst you might not want to pursue legal matters further, another 3rd _{party may well do so.}

‘cause everybody’s claiming, if you get somebody goes into the back of your car, somebody’s going to claim for whiplash if they can get two or three weeks off work and some money for it, that’s tending to come in now as well…’

Newcastle

‘It’s become a claims society…’ Teledepth 10

It gives peace of mind that if you did need to seek legal advice costs may be covered. It is considered an easy decision to opt for it, as it is relatively low cost in comparison to the total cost of the policy.

‘…the price £25 for the year is not much.’ Teledepth 7

Well it was an extra that you could have on the package that wouldn’t cost a lot of money per month, so I had it thrown in.

Teledepth 3

5.2 Policy Information

Recall of information supplied with products shows that a quarter report receiving nothing or can’t remember (only 4% stated they received nothing). This means the majority do recall receiving some form of information and most (70%) find it clear but given that further details of the policy were poorly recalled, this information is not having an impact on product knowledge.

However, whilst most say the information is clear, the most mentioned improvement required was to make information supplied clearer with less jargon.

Within the qualitative research, overwhelmingly, people mentioned that policy explanations should be made simpler

‘…it can be a little bit misleading….Well because of all the sort of legal jargon etcetera, and I think anything legal is a bit hard for the average person to understand unless they’re in that profession… I think it should be highlighted more instead of hidden away in a policy document.’ Teledepth 2

Just over two-thirds (68%) do read their policy documents albeit most just reading highlights (50%). This indicates that there is some level of product ‘contact’ but that this does not seem to help with product understanding.

This conflicts with the qualitative research where most have not read their policy documents and are unaware of policy features and scope of cover.

‘can I just ask a stupid question – the legal expenses insurance on your household insurance – does that cover for anything, if you have an accident in the car and somebody sues you on the legal side – not for the crash itself?’

Newcastle

‘…no I didn’t read the policy, you know, from front to back when I took it out, but I made sure I did once I was looking to put a claim in.

Teledepth 1

‘Eh, no, well I’ve not read it in depth, I’ve quickly glanced at kind of the main points’

Teledepth 6

But when discussed further, most did know where policy documents were kept for future reference and all feel they could find the information easily if needed.

Suggestions for improvements to LEI were not answered well. This again indicates a lack of knowledge/understanding of the product. Some ideas which were discussed include: creating greater awareness of household cover scope; 1 page summary; 2 or 3 lines on the certificate as a reminder of the scope of LEI and case studies.

‘get us a little pamphlet or something that comes – just a fool’s guide if you like just to explain each part’

Newcastle

‘When you take out a mortgage or something…they make it quite clear…they spell out very important information…I think it’s called ‘key facts’…spelt out in very plain English what it covers you for and typical exclusions’