Comparision of the NHS Litigation Authority and the Commercial Insurance Market

In February 2011 Marsh was appointed by the Department of Health to conduct an ‘industry review’ of the NHS Litigation Authority (NHS LA). The objective of the review was to ‘identify opportunities to introduce greater commercial management and practice to improve the efficiency of the services’. In January 2012, the Department of Health (DH) published Marsh’s report and agreed to consider the majority of the recommendations made.

The aim of this briefing paper is to combine knowledge of the NHS LA and the commercial insurance market, to highlight key differences and areas for analysis for any Foundation Trust considering leaving the NHS LA or examining alternatives. The focus of this paper is the Clinical Negligence Scheme for Trusts (CNST) which represents the largest exposure for most Trusts.