Compulsory mediation and digital portals will transform the legal landscape

This article originally appeared in Insurance Day, January 2026. 

Liability is not immune to the tectonic global shifts affecting the insurance and legal markets; whether it is regulatory change, claims inflation, ongoing geopolitical uncertainty or technology and artificial intelligence, these are drivers that affect how insurance functions and lawyers respond to the market.

In the UK, there are two particular trends in liability that are ongoing, both of which will only accelerate in momentum next year.

Compulsory mediation represents the first significant trend. In the UK, elements of mandatory mediation have been in place for more than a decade. The Children and Families Act 2014 requires parties to first attend a family mediation information and assessment meeting before court proceedings can begin. Similarly, in employment disputes both parties can be required to engage in discussions before pursuing the more costly court route.

Comparable models do exist internationally. Outside the UK, mandatory mediation has been around in Italy since 2011 and in some Australian states, parties to certain kinds of disputes are required to attempt resolution before they are permitted to commence proceedings. In a more fragmented and litigious legal market like the US, the idea is rarely discussed.

Compulsory mediation in the UK

Inspired by Sir Geoffrey Vos, Master of the Rolls, compulsory mediation was formally introduced in England and Wales from May 22, 2024 for specific small claims valued up to £10,000 – this captured a number of cases arising from insurance claims. At the time, the Ministry of Justice estimated this initiative could divert up to 20,000 cases each year from the court system, freeing up judicial resources for more complex cases.

While it is difficult to quantify the impact so far, it is highly likely the scheme will be extended to both higher-value and a broader overall set of claims types in 2026. There is no doubt the drive to alternative dispute resolution (ADR) will continue, despite Vos’s announcement on January 12, 2026 of his intention to retire. After five years in the role, he will retire on October 31, 2026.

In many parts of the world, including England and Wales, there remains a serious problem with a backlog in the courts. Judicial systems are grappling with the need to provide new and more efficient solutions to disputes, leveraging technological advancement and reflecting evolving societal expectations. Civil justice reform needs an overhaul and ADR solutions are part of the UK overhaul.

Compulsory mediation can play a significant role in reducing costs and delays in the legal system. Alongside this, we are also seeing a significant increase in the use of online portals, another major liability trend we expect to accelerate notably next year.

The impact for insurers is significant. Mandatory mediation is a move away from the existing adversarial process. When an insured says “We want our day in court” in a low-value claim captured by mandatory mediation, the case may now settle in a mediation forum, which will be very different from an adversarial court hearing. Insurer sales, relationship and claims handling teams will all be affected by the changes.

Digital justice reform

Vos has articulated a clear vision for digital justice reform: the need for a streamlined, accessible online process designed to improve access to justice, reduce delays and lower costs. Despite Vos announcing his retirement in recent days his legacy of the digitisation of justice and indeed all things ADR will continue.

As the use of online platforms by the courts continues to expand, insurers will need to ensure their own systems and workflows are aligned with these developments. Collaborating with legal advisers can help insurers navigate these changes effectively, for example by building complementary portals designed to help insurance and claims professionals manage the claims process more efficiently, while harvesting valuable management information and market-leading data.

UK portals still have a long way to go to match the example of a jurisdiction like Singapore. There, the Community Justice and Tribunals System operates as a one-stop, highly efficient online process that ensures costs and time are kept to a minimum. Although Singapore is a much smaller and tech-focused jurisdiction, it does provide a very real example of what a fully digitalised legal process can look like.

The UK’s digitisation journey has some distance to travel yet. Until then, we will have a rather odd mix of archaic “quill pen”-era processes alongside cutting-edge technology. This evolution will undoubtedly pose challenges to insurers, but also provide opportunities to drive efficiencies and harness technology.

The challenge for all insurers and all court users is keeping pace with the portals and the inevitable change in internal systems that will be required. There will also be training needs of the claims teams, which will need to adapt to the process changes and to explain that change in process to customers.