The Legal Services Act is here, outcomes-focused regulation is in place, and alternative business structures are trading. These sideshows are over and it’s time to concentrate on having a legal business that is profitable and viable on a sustainable basis over the next several years.

This year’s professional indemmity insurance (PII) renewal season is now upon us. Faced with LASPO, there is an obvious sense that some underwriters are approaching this season’s renewal with more caution than previous years. With the swathe of changes within the personal injury sector and the aftermath of Atteys and Blakemores earlier this year, against the backdrop of a legal market that is being challenged in all areas, it is not surprising that underwriters are expressing caution.

… or should that be beauty? The beholder wants your service to be a thing of beauty, but above all the beholder (your client) wants ‘value’ for your advice and a solution to their issue. Now a question. Do you think that your hourly billing rate provides value to your client? Sit for a moment on the other side of the desk and ask yourself, ‘How happy would I be personally to buy a service or a product that has an open-ended cost?’ I suggest the answer is ‘not very happy’.

As insurance companies look to form alternative business structures, the traditional legal sector can no longer just raise an eyebrow – we need to take a much more serious look at the practicalities and ethicalities involved. Purists will argue that placing insurers anywhere near the helm of a public-serving legal practice can only have a negative impact on the culture of the organisation, and ultimately, the level of service provided. And they would have a point.

External equity has been allowed in law firms since the start of last year, and there’s still plenty of talk about investing in law firms. The Law Society law management section’s annual financial benchmarking survey, published in January, revealed that one in five respondents were likely to seek external investment for expansion. But for the rest, there is no reason why independent firms cannot prosper provided that they are prepared to make some changes and understand the areas where they can compete effectively.