PricewaterhouseCoopers has been appointed as administrator of The Accident Group's owner, The Amulet Group, with immediate effect.
The Amulet Group provides legal expenses insurance for personal injury claims through its principal subsidiary, The Accident Group.
A PwC statement said: "The Accident Group has experienced a lower than expected claims success rate which has resulted in increased insurance premiums on new business and retrospective claims from the underwriters. This has led to financial difficulties for the group.
"Unfortunately, the directors have not been able to secure additional funding or insurance capacity, which has resulted in the appointment of administrators from PricewaterhouseCoopers today.
"Given that The Accident Group is unable to write new business, it is necessary for the administrator
to immediately reduce the cost base. Approximately 2,400 employees of the group have therefore been made redundant today. About 200 remaining employees will continue to process ongoing claims."
Michael Horrocks, joint administrator and partner at PricewaterhouseCoopers said: "Despite the redundancies declared we would be advertising the remaining parts of the group for sale. In the meantime we will work closely with creditors and underwriters to ensure existing claims are handled in an orderly and expedient way."
