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News
Direct Line reveals ABS legal services plans
updated on 19 October 2012
The Direct Line Group has revealed its intention to branch into legal services, with an application for alternative business structure (ABS) status set to be submitted before the new year.
As has been widely reported in the legal press, the plans were revealed in a prospectus for a stock market flotation of the group, which encompasses the well-known brands Churchill, Direct Line and Privilege. The move has been interpreted as an attempt to use legal services to make up for the income that will be lost once referral fees are scrapped by the implementation of the Jackson civil litigation review next April. The group's rival insurer Axa UK has criticised plans to provide legal services on these grounds.
A spokesperson for the Direct Line Group said: "In light of possible regulatory changes to remove dysfunctionality from the UK motor insurance market, which we support, we're looking at a variety of options, including legal services, to ensure we're able to sustain our competitiveness and continue to offer customers choice, and great value and service."
