Alternative Business Structures and the changing legal expenses insurance market

Helen Withers, Managing Director of Arc Legal, has been commenting on the divide within the legal expenses insurance market on the subject of Alternative Business Structures (ABS), and the effect that changing legislation has on the decision to become an ABS.

Helen highlighted that the ABS model presents potential conflicts between the commercial needs of the legal expenses provider and the insured, and stressed that the company has no plans to establish an ABS.

Helen also discussed what impact the proposed referral fee ban (part of the LASPO Act) will have on a legal expenses insurer's consideration of becoming an ABS. Under an ABS model, there may be the potential for some legal expenses firms to replace lost referral fee income with shared profit generated from personal injury cases.

Arc Legal generates 100% of revenue through premiums. Referral fees do not make up any aspect of Arc Legal' revenue, who will therefore be unaffected by the referral fee ban, and would receive no benefits operating as an ABS for this purpose.

Helen was speaking to Post Magazine. The full article can be found on their website at

Deal with Swinton's Open + Direct sees Arc Legal Expand Northern Ireland Footprint

Arc Legal has expanded its presence in Northern Ireland after winning a contract to provide clients of Open + Direct (part of the Swinton Group) with Family Legal Protection products.

The Family Legal Protection Insurance provides cover for personal injury, contractual & property disputes and employment matters including dismissals. In addition, Open + Direct's clients can also purchase an optional "diamond" package that extends the cover to include clinical negligence, personal identity theft, data protection and school admission disputes.

The contract follows Arc Legal securing a deal in February to provide Commercial Legal Expenses Insurance, and an extended online Employment Manual service to Swinton Commercial. Arc Legal also provides Swinton Commercial with property owners and specialist caravan legal products and services.

Court of Appeal ruling on BTE non-panel solicitor rates reflects commercial reality of Legal Services say Arc Legal

Arc Legal has welcomed the recent ruling by the Court of Appeal on non-panel law firm rates for Before-the-Event (BTE) legal expenses work.

The appeal court said that legal expenses insurers are obliged to pay non-panel firms an "appropriate"

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