AA revs up ABS market

The news that the AA has become the latest in a string of high street companies to jump on the ABS bandwagon proves that insurer appetite for ABS makeovers shows no sign of abating.

A number of insurers have stepped into the legal services market this year. They include Admiral, which formed a partnership with Cardiff-based compensation firm Cordner Lewis and Lyons Davidson – also the AA’s new best friend – and Direct Line, which has formed a partnership with Parabis.

Other insurers buddying up with law firms to get a Solicitors Regulation Authority (SRA) rubber stamp include Ageas UK and the RAC, which teamed up with Quindell in a five-year deal.

The ban on referral fees introduced by the Jackson reforms has made the ABS model – and the in-house work it brings – an appealing proposition for insurers. Keep your eyes on the road ahead for more developments.

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