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DAS have recently been commenting on the future of the Legal Expenses Insurance market following various changes to legislation such as the LASPO Act, Qualified One-Way Costs Shifting and the proposed cap on recoverable costs, all of which are due to be implemented in 2013.


Richard Finan, Director of Arc Legal Assistance has also commented on how he sees the Legal Expenses Insurance market developing in 2013:


“For once Arc Legal Assistance agrees with DAS in relation to the opportunities for the BTE motor legal expenses market post-LASPO.


“It’s good to see the firm recognising the opportunities as it wasn’t that long ago that they were heralding the end of the BTE add-on model in the UK and saying, in this very publication, that standalone legal expenses “is probably the only way of selling successfully.”


“LASPO, Qualified One-Way Costs Shifting and the recently announced proposals on fixed recoverable costs by the MoJ will change the motor legal expenses and ATE landscape. There will be a change in emphasis from the ‘no cost’ LEI product (which had no substance and was purely a claim capture tool to generate referral fee revenue), to the return of the need for proper insurance which pays claims.


“Arc Legal are probably one step ahead of DAS in anticipating these changes to the market as our business model has never focused on the generation of referral fee income. There are clearly issues for some LEI providers in a world without referral fees but, as a result of LASPO, the opportunities for brokers, and those in the BTE market prepared for the changes, are significant.”


The DAS article can be found on the Post Magazine website at

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