RSA becomes latest insurer to launch its own law firm

RSA has gained regulatory approval to launch its own law firm in partnership with legal and professional services company Parabis.

RSA Law Ltd was granted an alternative business structure (ABS) licence by the Solicitors Regulation Authority last week. It will be effective from 1 April, the Law Society Gazette reports.

The insurer is the latest to take advantage of the so-called ‘Tesco Law’ that came into effect four years ago and allows all types of businesses to own law firms

Another insurer to launch a legal arm is Direct Line, which has a subsidiary called DLG Legal Services, also in partnership with Parabis.

And Ageas has a five-year tie-in with Cardiff-based law firm NewLaw.

Insurers say that owning their own law firms allows them to improve customer service, as they have full control of claims.

But ABS’s have courted controversy. Last year Louise Ellman, chairwoman of the Transport Select Committee, raised concerns over whether referral fees are re-emerging under the ABS structure.

An RSA spokesperson said: “We can confirm that we have received approval to establish an alternative business structure in partnership with Parabis. We are creating RSA Law to support our customers who have a genuine need for a seamless high quality claims and legal service.”