BT is set for a push into the legal services market with the news that its claims management arm has applied to become an alternative business structure (ABS).

BT Claims, which has been trading since 2010, is a motor claims company principally servicing the telecoms giant's own vehicles. Subject to receiving a licence from the Solicitors Regulation Authority, the company is now set to offer a separate claims management service to other corporates.

BT Claims' Sheffield-based legal team, which is led by in-house solicitor Miles Jobling, will launch the venture with around 20 staff – the majority of whom are solicitors – with a view to growing the team in the longer term subject to demand.

A BT spokesperson said: "We can confirm that BT Claims has submitted an application to begin the ABS process in order that it can offer its expertise to other corporates, insurance and companies and brokers who share the same values as them and see this as an opportunity to improve their approach to the way in which they manage claims. BT is not looking to enter the consumer claims market."

BT Claims is a wholly owned BT Group company which currently provides a UK-wide motor claims management service to 35,000 corporate fleet vehicles. It handles around 4,000 at fault accident damage and personal injury claims per year, with a an average liability value in excess of £5m and around 3,000 non-fault loss recovery claims with an annual recovered value of £2.5m.

The SRA began accepting ABS license applications on 3 January and has since received around 100 first-stage applications covering a wide variety of legal services business models.

The applications to date have included a number of 'non-conventional' legal brands such as the Co-op, fuelling an expectation that the reforms brought about by the Legal Services Act will spark a revolution in the retail legal services market in England and Wales.

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