BUSINESS UPDATE - Q1

30th March 2010

Arc Legal commenting on market matters

Response to DAS comments on UK legal expenses model

Helen Withers, Managing Director of Arc Legal responds to comments from DAS on the future of the UK's add-on legal expenses insurance model.

“Why is Paul Asplin sounding the death knell for the UK legal expenses model when alternative UK business models are already demonstrating that add-on legal expenses can deliver both a responsive service and profit? Perhaps it is time for him to look at the issues closer to home.”

See full letter in Media area within www.arclegal.co.uk

Referral fee income loss for brokers

Richard Finan highlighted referral fee income issues for brokers resulting from the introduction of Ministry of Justice personal injury reforms.

Speaking about potential mid-contract changes to fixed referral fees agreements, Finan said: "I expect the majority of broker panel solicitor referral contracts contain these 'change of law' clauses. The amount fee income will be reduced by is unknown, and will be determined by the number of cases that fall into the new reduced fixed fee".

He claimed that brokers who had failed to budget for such a reduction could find themselves out of pocket as the reforms take effect in April 2010.