A popular insurance product that insulates businesses and individuals from the cost of losing a lawsuit may be removed from the market under reforms designed to reduce litigation expenses in England and Wales.

So-called “after-the-event” insurance emerged as one of the main targets of a mammoth review of the costs system published on Friday in London by a senior judge. The market for ATE insurance has seen huge growth over the past 10 years, since a rule change that allows the winning party in a lawsuit to recover the amount of premium paid.