German consumers demand easier, quicker and cheaper access to the law

German consumers want easier and quicker access to the law, according to a new survey carried out by opinion research institute YouGov on behalf of the German Insurance Association (GDV). The GDV reports that the survey found that, when solving legal problems, German consumers expect direct legal advice and out-of-court representation, also from their insurer's legal staff. Overall, the solution of legal problems is considered to be too lengthy, said the GDV. “The high cost of litigation worries consumers. The work of lawyers and courts is judged to be expensive, tedious and not digital enough,” said the association. German consumers have specific expectations of legal protection insurance. Four out of five respondents think that quick and easy access to legal advice (86%) and the recommendation of specialised local lawyers (82%) are important, based on the survey. For almost 80% of participants, direct legal advice and out-of-court representation when contacting the insurer via their employees is an important option. “Direct legal advice from insurers has so far been forbidden in Germany. In the interest of our customers, we demand a corresponding adjustment of the Legal Services Act. A look at neighbouring countries, such as the Netherlands or Switzerland, shows this can make access to the law easier,” said GDV general manager Jörg Asmussen. Personal, individual advice on a legal problem is more important to older consumers than younger ones (18- to 24-year-olds: 68%; 55-year-olds and older: 89%), according to the survey. “The desire to achieve the best possible economic result, even if the solution takes a little longer, is also more pronounced among older people. For more than three quarters of those surveyed, the first point of contact in a legal dispute is either the opposing party themselves or they first search the internet for a solution to their problem. Friends or acquaintances, but also lawyers, are therefore not the first choice (55%). Those who have legal expenses insurance contact them straight away with their problem (82%),” said the GDV. Digitalisation is becoming increasingly important when it comes to solving legal problems, based on this survey. Although the work of lawyers and courts is considered competent and fair by the majority, less than half believe that it is citizen-oriented, modern and digital enough, explained the insurance association. “The survey shows that the majority of consumers want to communicate more and more digitally, even if they have legal problems. We, as legal protection insurers, are preparing for this in order to make it easier for our customers to access the law,” said Asmussen. Consumers also want greater digitalisation when they first contact them about a legal problem. The first choice is still face-to-face contact, but the second choice is to only communicate digitally. The classic phonecall is only the third favorite choice. The costs of a legal dispute are not always manageable for German consumers, found the poll. About 70% of those surveyed without legal protection insurance fear they will have to invest more money than makes economic sense, and about 64% that they will not be able to finance a lawsuit. About 60% are afraid that they cannot afford a lawyer and that they will have to give up during the legal battle. Younger people are even more afraid of the costs than older people, based on this survey. “For many consumers, the cost of litigation is a major and all-too-often insurmountable hurdle. The opportunity to get their rights must be the same for everyone and must not fail because of the costs,” said Asmussen. The survey also found that the willingness to sue or to waive a claim depends primarily on the amount in dispute and the associated risk of costs. The higher the value in dispute, the higher the costs that will be incurred by those seeking justice in the event of failure. However, the cost risk is comparatively higher with a lower amount in dispute. With a value in dispute of €5,000 (costs €2,800), only 44% of those surveyed without legal protection insurance would file a complaint at all. Almost every fifth person said they would rather not file a lawsuit and give up their claim. With a lower value in dispute of €1,000 (costs €830), only 34% would be willing to file a lawsuit, while almost every third person (29%) would forgo a lawsuit and their claim.

German consumers demand easier, quicker and cheaper access to the law

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