Ageas and NewLaw solicitors have created one of the first alternative business structures (ABS), to allow legal services to be offered to customers making non-fault personal injury claims. It follows approval from the Solicitors Regulation Authority.
The development, which is likely to be followed by a number of similar partnerships, had been widely heralded following the changes brought by the Legal Services Act and the Jackson reforms of civil litigation, which included a ban on referral fees in personal injury cases.
The new firm, Ageas Law, started trading on April 8th 2013, and has been set up as a limited liability partnership (LLP). The partnership is scheduled to run for 5 years and follows a detailed and long-term tender process managed by Ageas, involving a number of legal firms.
The significance of this and other similar deals is important; given that referral fees have traditionally represented a huge income stream for motor insurers and brokers. It is also likely to lead to consolidation amongst specialist PI solicitors; many of which have worked for a range of insurers, brokers and claims management companies in the past.
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