BT to enter ABS market
updated on 24 February 2012
BT has declared an intention to enter the legal market, via its subsidiary BT Claims, which has applied to the SRA for an alternative business structure (ABS) licence.
As reported in the Gazette, BT Claims is a nationwide claims management service which currently deals with legal issues relating to the fleet of over 35,000 BT vehicles. It handles around 4,000 at-fault accident damage and personal injury claims every year.
If approved, BT will be one of the biggest new entrants to the legal sector. A spokesman for BT Claims said: "The initial focus will be on handling motor claims and litigation, which may be transferable to other sectors. It is about getting claims settled quickly and for the right price rather than stringing things out."
As of 23 February, the SRA had received around 125 applications for ABS licences. Antony Townsend, SRA chief executive, said: "The arrival of ABS should foster a more flexible and innovative market for legal services. It should have a major impact on consumers' experiences of legal services, it should stimulate competition and encourage innovation. We are delighted that some 125 firms have started to make applications within the first few weeks of our opening our applications process, and that 33 have already progressed to the completion of the full application."
