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Richard Finan, Director of Arc Legal Assistance, has been discussing the future of Motor Legal Expenses Insurance following recent legislation and regulatory changes.

The Legal Expenses market is going through significant changes following the implementation of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act in April 2013, as well as the changes to the level of fixed recoverable costs for RTA Portal claims. This has left Legal Expenses providers in varying positions, with many still looking at ways that they can tailor their business models in response to the changes.

Many Legal Expenses providers may leave the Motor Legal Expenses market altogether. The days of offering Motor Legal Expenses for nothing are gone, due to the referral fee ban and cap on fixed recoverable costs, leaving many providers with outdated business models.

Arc Legal has always generated 100% of revenue through insurance premiums, and never from referral fees. Our flexible business model has allowed us to develop a Motor Legal Expenses product that provides real benefits for today’s motorists, despite the legislation changes.

Richard was speaking to Insurance Age. The full article can be found at

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