Saga launches stand-alone legal expenses insurance product

The legal services market needs shaking up, Saga has said as it unveiled its new before-the-event legal services package today.

Legal Essentials marks the over-50s membership organisation’s first foray into the stand-alone, before-the-event legal services insurance market, positioning it head to head with the likes of the Co-op or consumer organisation Which?.

Part of the Acromas group, Saga also confirmed earlier reports that it had applied to the Solicitors Regulation Authority to become and alternative business structure.

Car insurance giant the  AA, also part of Acromas, is understood to also have applied to become an ABS. Asked to confirm a spokesperson said the AA would "continue to look at business opportunities".

Last month the group denied rumours that it was planning to become listed on the London stock exchange and sell off both Saga and the AA.

Saga launched a suite of legal services two years ago but most were only available as add-ons to home or motor insurance products.

This included access to an online library of off-the-shelf precedents and DIY forms provided by document-assembly business Epoq.

Policy holders were also able to talk to lawyers at Parabis, the specialist insurance law firm that became an ABS on 21 August this year.

For £30 a year, Legal Essentials will now give members who do not have insurance with Saga access to the same set of online tools plus a 24 hour legal helpline providing initial advice on a range of claims.

The new service will include contract disputes, personal injury claims, employment disputes, and neighbour disputes.

The online legal library will continue to be provided by Epoq, with the same option to seek assistance from a lawyer via Parabis.

The cost of pursuing a civil claim will be covered under the Legal Essentials subscription up to £100,000 – twice the ceiling offered by the nearest competitors, according to Saga’s head of business development Karen Brenchley.

Alongside Legal Essentials, Saga’s Legal Solutions range offers fixed-fee services for will-writing, lasting powers of attorney, probate and conveyancing.

These services will be available at a 20 per cent discount to Legal Essentials subscribers.

Members requiring assistance with the forms or who want to check on the progress of their conveyancing will be able to call a separate number between 8am and 8pm weekdays, as well as Saturday and Sunday.

Where a lawyer’s help is required, they will be put through to one of two panel firms – Grindeys or O’Neill Patient – in the case of a conveyancing enquiry, or to Parabis for all other queries.

At this point, Saga will no longer have the relationship with the client, which passes on to the law firm to comply with SRA requirements.

Parabis also has responsibility for managing the panel firms.

By way of comparison, consumer organisation Which? Offers legal protection cover at £68 a year – discounted to £34 in a recent campaign – and MTA Solicitors, the first law firm to offer a similar service, via its LawStore brand, at £4.95 a month.

New entrants are also using legal expenses insurance – or before the event insurance – as a way into the sector.

Google-backed Rocket Lawyer, set to launch in the UK in the next few months, will be offering annual subscription at around £100 per annum.