Legal expenses insurer ARAG brought together MPs, insurers, brokers, academics, law firms and other legal sector organisations at the House of Commons on Monday for the launch of Insuring Justice, a new impact report arguing that legal protection insurance has become a structural necessity as the UK's access to justice crisis deepens.
The report, produced in partnership with The Purpose Coalition, arrives as pressure on courts and tribunals reaches breaking point. The outstanding Crown Court caseload in England and Wales stood at around 80,200 cases in the quarter ending December 2025, the highest level recorded since 2016 and more than double the pre-pandemic figure.
Employment tribunal backlogs have climbed even more sharply. The open caseload reached 68,192 cases at the end of January 2026, up from 45,751 a year earlier, with individual claims outstanding across single and multiple case types now exceeding 500,000.
Insuring Justice details the role the legal expenses insurance (LEI) sector plays in providing early legal advice, enabling individuals and small businesses to assert their rights, and relieving pressure on public services. More than 10 million households and millions of businesses across the UK hold some form of legal expenses policy, typically providing telephone access to legal advice across a wide range of issues alongside cover for the costs of common legal disputes.
Meanwhile, official data shows the average small claim now takes 40.6 weeks to reach trial, reinforcing the report's central argument that early intervention through legal insurance can prevent disputes from entering a system ill-equipped to handle them.
Justine Greening, chair of The Purpose Coalition, said the findings spoke directly to the current parliamentary debate on justice reform. "As Parliament continues to consider how best to support a fair and effective justice system, the case studies and insights in this report are both relevant and timely. They reinforce a simple but powerful idea – that access to justice should support opportunity, not limit it."
Meanwhile, David Haynes, chief executive of ARAG, said the insurer's ambition extended beyond documenting what already exists. "We want to work with government, with parliamentarians and with others across the justice system to improve access to early advice and prevent problems escalating unnecessarily," said Haynes.
The report's push for greater public and political awareness of LEI carries a direct commercial implication for the broker market.
LEI is predominantly distributed as an add-on to home, commercial and motor policies, meaning brokers play a pivotal role in determining whether policyholders ever access the cover. A product category that has historically been undersold relative to its relevance is now being positioned as essential social infrastructure at the highest levels of government.
That shift in framing coincides with strong financial momentum at ARAG. The insurer reported gross written premiums under management of £77.8 million for the 2024 financial year, up from £66.1 million in 2023, driven by growth in its before-the-event commercial and family legal expenses books alongside insured assistance and after-the-event products. Profit before tax more than doubled to £1.8 million, marking the company's 15th consecutive year in profit.
At group level, ARAG generated gross written premiums of €3.16 billion in the 2025 financial year, up 13.2% on 2024, with legal insurance premiums growing 11.5%.
The legislative landscape is adding further structural impetus to LEI demand.
The Employment Rights Act 2025 represents the most significant overhaul of UK employment law in decades. From October 2026, the time limit for submitting employment tribunal claims will increase from three months to six months. From January 2027, the qualifying period for unfair dismissal will be reduced from two years to six months and the compensation cap, currently the lower of 52 weeks' pay or £118,223, will be removed entirely.
Legal experts have warned the combined effect will intensify pressure on an already stretched system. The extended limitation period alone is very likely to lead to a significant increase in claims. For insurers and brokers, the implications run in two directions: the frequency and severity of employment-related claims on LEI policies is expected to rise, while demand for cover from both employers and employees is likely to grow as awareness of the new rights increases. Notably, such cover is often held by employees as well as employers, broadening the potential market on both sides of any dispute.
