Legal expenses challenge emerges as loss adjuster restructures

A new legal expenses provider will be launched by a former Capita executive, following Capita Insurance Services' latest restructuring.

An executive, who left Capita by "mutual consent" after the restructure, is believed to be setting up a company to rival Capita's legal expenses service.

Last Friday, Capita announced it would split into three divisions: claims services, outsourcing services and specialist services.

Among the high profile departures accompanying the announcement were Capita Assistance business director Helen Withers, loss adjusting business director Alistair Whiteside and senior account manager Brian Polly.

Withers said she reached a "mutual parting of the ways" with Capita.

"I'm looking at a number of options at the moment," she said.

Sources said it was likely that Withers would set up a rival legal expenses provider with former colleagues from Hambro Assistance. It is understood that it would provide "everything but underwriting".

Under the restructure, Capita's claims services will divide into McLarens technical adjusting services, led by Phil Heron, and claims management run by Tony Emms.

Heron was the only one of 39 McLarens directors taken on when Capita bought the loss adjuster to have remained at the company.

Specialist services will comprise legal cost auditing, legal and medical assistance and London Market services. Robin McCoy will run the division.

Outsourcing services was set up to handle bespoke solutions.

Capita said that the restructuring provided an increased focus on core products and would let Capita deliver its diverse services more effectively.

Sources said reaction to the restructuring within Capita was "ho-hum".

"There's been an awful lot of restructuring so reaction was fairly muted," one employee said.