What is it about motoring companies suddenly going ga-ga for the legal market?
Last week RAC dipped its toe into the legal sector by laying the foundations for a deal with Quindell Portfolio. Then motor insurer Admiral entered the legal market after being granted an ABS licence. Now, vehicle incident management group FMG has launched an ABS with NewLaw. That’s a major set of issues for any general counsel to deal with.
It has been only a week since the Jackson reforms were implemented, but already the impact is being felt in the ABS sector. The loss of referral fee income and prevention of after-the-event legal expenses recoverability has forced volume outfits to look again at how their model operates.
It explains why a number of motoring companies have suddenly got the hots for the legal sector – for insurers with big books of personal lines motor business the income gap needs to be plugged and the most effective way of doing that is partnering with law firms.
You could say motoring GCs are becoming a driving force.