A pioneering alternative business structure (ABS) is set to revolutionise the legal market by introducing professional indemnity insurance specifically for law firms.
- ABS, supported by a sovereign wealth fund, is launching an insurance business and plans to expand through acquisitions.
- rradar, the company behind this innovation, has already launched cyber insurance and plans additional products by 2025.
- The firm’s initiative is an attempt to modernise traditional insurance policies and align them with current market needs.
- The company’s strategic growth is backed by a substantial investment and ambitions to acquire niche law firms.
A pioneering alternative business structure (ABS) is embarking on a novel venture by launching its own insurance services tailored for law firms, among other professional sectors. This move is expected to set a precedent within the legal industry, offering customised protection that meets the specific needs and risks faced by such entities.
The firm, rradar, has disclosed plans for significant expansion, bolstered by backing from a sovereign wealth fund. This support has facilitated the firm’s ambitions to broaden its operational capacity through strategic acquisitions. Established in 2012 and converting to an ABS in 2014, rradar has grown into a comprehensive legal service provider with a focus on managing business risks.
The enterprise’s new insurance venture, rrelentless, has been introduced with notable experience at its helm. It initially offers a cyber insurance product, supported by industry giant AXA, with plans to release a management liability insurance product later in the year. Furthermore, a professional indemnity insurance product is slated for introduction by 2025.
Founder Gary Gallen articulated the integral relationship between law and insurance, emphasising the need for innovative solutions in policy development. He commented on the obsolescence of traditional insurance models, particularly in light of recent global shifts towards remote work environments. “We have customers before we launch the products. We have a waiting list of people who want to buy them,” highlighted Gallen, underscoring the demand for such tailored offerings.
The firm not only aims to supply insurance but also to deliver consultancy services designed to enhance law firms’ business models, promoting sustainable and claim-free operations. This dual approach intends to create a more resilient legal sector, helping practices avoid common pitfalls that lead to insurance claims.
rradar’s growth trajectory is further supported by a substantial investment received at the end of 2022, amounting to an eight-figure sum from significant international investors. Despite this, their stake remains a minority relative to the company’s valuation, which exceeds £100m.
In pursuit of its expansion strategy, rradar is targeting acquisitions of up to 100 businesses. Currently, the company is engaged in negotiations to acquire two niche law firms, with one acquisition, Backhouse Jones, already completed without prior market announcement. Backhouse Jones is noted for its expertise in truck cartel litigation, alongside its representation of the Road Haulage Association in a collective capacity.
The firm’s pioneering approach is underscored by Gallen’s acknowledgment of the boldness required to venture into uncharted territory within the legal industry. This strategy not only involves taking calculated risks but is also rooted in Gallen’s belief in the essential role of lawyers in maintaining societal function.
This innovative step by rradar reflects a significant shift towards modernising the intersection of legal and insurance services.
