Insurers Direct Line plan ABS efficiency switch
9th October 2012
One of the UK’s biggest insurance firms, Direct Line, have announced that they are strongly considering launching themselves as an Alternative Business Structure (ABS) in the near future, in a move which they believe will lead them to making efficiencies in their legal expenses.
If and when the status conversion goes ahead, it will be one of the most significant Initial Public Offerings (IPOs) to have taken place this year, potentially overshadowing the similar recent announcements made by insurance rivals AA and its parent company, Saga Group.
The prospect of Direct Line offering their customers the dedicated services of professionals with solicitor jobs in London and elsewhere would be seen as a sign of the company’s eagerness to remain viable in what is a particularly competitive industry.
A spokesperson for the group confirmed that they were supportive of the ABS concept in general, saying that it should help to ‘remove dysfunctionality’ from the marketplace.