BUSINESS UPDATE - Q1

Arc Legal teams up with Admiral in Family Legal Expenses deal

Arc Legal Assistance, in partnership with AXA Assistance, has secured a deal with Admiral to provide Family Legal Expenses Insurance to their motor and home insurance customers.

The product will be available as part of Admiral’s newly launched line of Household Insurance products and will include cover for Contractual Disputes, Employment Disputes, Motor Prosecution Defence and Personal & Vehicle Identity Theft. Admiral will also be offering the product to their Motor Insurance customers.

Arc Legal joins MGAA

Arc Legal has become a member of the Managing General Agents’ Association (MGAA).

Commenting on the decision to join the MGAA, Richard Finan, Director of Arc Legal, said: "Our aim is to use our expertise to allow insurers to participate in this specialist class of insurance, and to provide services to distribution channels which are not within an insurer’s usual capability. On this basis, Arc Legal’s business model represents an excellent example of a Managing General Agent."

"We believe our membership of the MGAA will further help strengthen the industry’s understanding of the diverse role and range of expertise that MGAs provide, and help to demonstrate the benefits of Arc Legal’s business model for the distribution of Legal Expenses Insurance products."

LASPO and new MoJ consultation ‘double whammy’ creating litigation funding gap for claimants says Arc Legal

The combination of the consultation by the Ministry of Justice (MoJ) on law firm cost recoveries and the impact of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act on success fees is likely to expose claimants without legal expenses insurance to significant levels of deductions from damages, as a result of Damages Based Agreements (DBAs).

In addition, if the MoJ does significantly reduce the level of solicitor’s costs recoverable from the third party, as per their recently issued consultation paper, solicitors may look to make up the shortfall from DBAs.

Commenting on the implications for claimants, Richard Finan, Director of Arc Legal, said: "The ‘double whammy’ of success fees being deducted from claimant’s damages and new levels of costs deductions will expose those claimants without legal expenses insurance to the prospect of significant reductions in the compensation they would receive."

Legal focus on Social Media abusers paves the way for dedicated cover

Arc Legal has launched one of the first Social Media Defamation covers in response to increased awareness of social media abuse cases, the recent publication of new CPS guidelines on sentencing for online abuses and the Defamation Bill currently going through parliament.

The dedicated protection is being offered as part of its ID theft and personal legal expenses policies. It will provide cover for the costs of a solicitor to contact the author of online content, and the website hosting company demanding removal of the material.

Arc Legal partnership with Rent4sure sees unique online claims reporting for Residential Landlords

Arc Legal has been appointed by Rent4sure to provide a range of comprehensive Managing Agents and Residential Landlord Legal Expenses and Rent Protection Insurance schemes. The schemes will also see the launch of a unique online claims reporting system that enables letting agents to submit claims directly to Arc Legal. The system will streamline the claims process by pre-populating claim forms with relevant data held by Rent4sure, saving letting agents time and enabling them to offer a more responsive service to their landlords.

Arc Legal is providing a range of legal and rent insurance products to Rent4sure clients including policies available with nil excess. The products cover legal costs for eviction proceedings and also provide cover for rent when a tenant defaults.

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