Former Capita Assistance staff and Amicus Legal have joined forces to launch their own legal costs company, Arc Legal Assistance.
The company launched last week is targeting insurers, brokers and affinity groups.
It offers tailored legal costs insurance cover together with a range of other legal helplines and services.
Former Capita Assistance employees include Helen Withers, former business director for legal and medical services and Frank O'Malley, former head of underwriting, who is to start on 1 May.
Richard Finan, a former director of Amicus, said: "We have an extensive list of contacts that we are going to be working through."
Arc managing director Helen Withers said: "With the advantage of a fresh start and legacy issues we have been able to construct a business model that fits the market as it is today. We can offer a highly streamlined and efficient service to policyholders."
Arc has already created a specific underwriting market for AXA Assistance and a number of underwriters at Lloyds.