Admiral is considering branching into the legal industry as a response to the Ministry of Justice’s plan to ban referral fees, the Telegraph has reported.
The loss of income when the ban comes into place is expected to be millions of pounds per year. To combat this the insurer plans to either set up it’s own personal injury law firm or become a majority backer in an existing firm, according to the paper.
The Ministry of Justice said it would abolish referral fees (the fee a law firm pays to an insurer for information on a potential personal injury claimant) because they are inflating the price of car insurance.
While they declined to comment today, the insurer said in September, “Admiral does not sell customer data; if one of our policyholders has a non-fault accident, suffers a bodily injury and they require assistance, we will put them in touch with a personal injury lawyer.”
Admiral would not be the first insurance company to enter the law business, with Axa Insurance owning Knight Legal Services.
