Insurance market shake-up. Is conveyancing next?
In an attempt to cut costs many insurance firms are setting up their own legal firms in order to reduce the need for outsourcing work.
Will the same soon be seen in conveyancing? With larger estate agents already employing conveyancers, will we see organisations like the Co-operative exclusively using in-house teams in the future?
According to research from Espirito Santo Investment Bank half the big insurance companies are planning to build larger internal teams.
This move will reshape the legal insurance market.
The research showed that other costs cutting measures were also being considered by firms.
This could include scrapping legal panels and sending all of the work to a single low-cost provider at a fixed price.
Espirito Santo believes a number of insurance law providers will be forced out the market.
Will this also be the case for conveyancers?
The research comes after Australia’s Slater & Gordon’s, the world’s first publicly listed law firm, bought UK personal injury specialist law firm Russell Jones & Walker earlier this year for £53.8m in a Legal Services Act first.
The move demonstrated the appetite for further consolidation as well as an indication of how insurance firms plan to take advantage of the new opportunities afforded them under the LSA.