Traversing the turbulence of the legal solutions market

A Firm's Mastery Of Double-Digit Organic Growth

Over the past few months, Keoghs - the division of Davies that provides legal solutions - has experienced significant growth. They have established a fresh office in Leeds, strengthened their team in Scotland, and enhanced their credit hire services by welcoming a new partner and team from Plexus Law.

In a conversation about the direction of the company and its future plans for growth, Andrew Evans, the leader of Keoghs' corporate and sector risk (CSR) practice, emphasized the significance of having a unique claims proposition in the business's accomplishments thus far. According to Evans, Keoghs began developing its proposition in the 2000s and was the first to introduce a comprehensive single-source solution for claims and litigation across various industries.

According to Evans, the early advantage Keoghs possessed has resulted in significant benefits in the long term. This is evident from the consistent growth Keoghs has experienced, even amidst the current chaotic state of the legal solutions industry.

"It has been a tumultuous market for the past couple of years, according to his perspective as a provider," he stated. "Traditionally, our main rivals were BLM and Plexus. However, BLM joined forces with Clyde & Co last year, resulting in their Liverpool office becoming part of our CSR division. This integration introduced 21 new team members, including a sector leader, which has enabled us to expand into the construction and aviation sectors. Consequently, this has fragmented our competition to some extent and we have managed to secure some clients from Clyde following the merger."

Recently, there has been a lot of talk about Plexus. They made headlines by submitting a second notice stating their intention to hire administrators in June. However, they were able to avoid that fate when Axiom Ince Limited stepped in and acquired them in July. As a result of this deal, Anne Chapman, a partner from Plexus, joined Keoghs along with her team of five individuals. All of them now work within Keoghs' Tactical Credit Hire division. These changes highlight the current state of the market, which is experiencing a lot of turbulence. In addition to these movements, there are also new players entering the market, attempting to establish themselves by offering their own claims solutions.

"This phenomenon is occurring because the industry acknowledges that utilizing a single remedy for all their claims greatly simplifies their management, minimizes losses, and most importantly, fosters effectiveness that leads to substantial reductions in claims expenditure," he explained. "In instances where we have acquired independent TPAs with legal expertise and merged them into our cohesive teams, allowing the legal department to collaborate and serve the same clients, it is common for clients to witness savings in their claims expenditure of more than ten percent."

Evans pointed out that this service is what has set Keoghs apart so far and allowed it to assist some of the largest companies in the UK, especially in the retail sector. Retail is the primary industry for Keoghs, according to him, and it is now believed that the firm represents more than 55% of claims made against retailers in the UK. Using the data collected from these cases, the company can assess and tailor its claims strategy to meet the unique needs of each corporate client.

"He mentioned that this not only helps them save a substantial amount of money, but also encourages them to adopt sound practices when handling claims. This, in turn, safeguards their reputation. By being proactive, they can address claims promptly and handle them appropriately, in line with their own claims principles."

"And regarding the intermediaries and insurance providers, when the insurance price is introduced to the market, they gain a more transparent understanding of the current situation with their risk. This enables them to allocate it more efficiently, save on premiums, and even consider more creative approaches and remedies, with the assurance that the amount and commotion related to insurance claims are being managed effectively."

The notion of claims being the evidence of an insurance purchase is gaining popularity as consumer expectations evolve and insurance companies strive for greater efficiency. There is a growing recognition that skillful claims handling presents a genuine chance for standing out from the competition, according to Evans. He has observed this sentiment being expressed by higher-level executives collaborating with various international brokers.

"I believe that if they are encouraged, they will acknowledge that they have been considering claims as a distinct matter for an excessive amount of time," he expressed. "However, I think they now grasp the concept that to stand out in their industry, they must examine every aspect pertaining to the overall risk expenses."

"[…] I believe that the industry has never truly devoted sufficient consideration to the methods by which they can actively establish limits on claims expenses and reduce them. Now, as they are beginning to recognize this possibility - while also acknowledging the essentiality of possessing the necessary data - it is becoming increasingly appealing to them."

The chance to attract additional players to Keoghs' ecosystem is prompting those who want to create all-in-one solutions to join in. However, Evans acknowledged that accomplishing this task is more difficult in practice than in theory. Despite this, Keoghs remains determined to not become complacent and will strive to make the most of their early advantage.

"What sets Keoghs' corporate risk offering apart from our rivals, though, is the chance we have to make the most of all our expertise throughout Davies," he stated. "When suitable, this allows us to access the solutions from the broader company and truly provide comprehensive, single-supplier incident and claims solutions for our clients – in addition to pioneering insurance program solutions."

This distinct market position enables us to introduce fresh concepts and solutions that not only aid in cutting down claims expenses and overall risk costs, but also provide assistance in freeing up capital from the balance sheet.

According to Evans, the company has experienced a consistent increase in natural growth year after year, with a rate of growth in the tens. He anticipates this year to be particularly successful due to the company's recent acquisitions and speedy expansion.

"But that's just a small piece of the puzzle," he remarked. "The explanation behind our current position lies in our decision, made long ago, to have a profound understanding of our product. As legal professionals, our utmost priority is to provide top-notch quality and ensure client satisfaction. This holds greater significance to us than any other aspect since, for the majority of our clients, our reputation carries more value than any monetary gain."

So, if we all understand those aspects concerning reputation, authority, and taking proactive measures to ensure a positive claims experience, then that's what holds the utmost significance.

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