Leading defendant law firm DAC Beachcroft has joined forces with a leading business process outsourcer to offer insurers an extended motor claims-handling service.

The agreement with Innovation Group to help insurers handle claims made against  them mirrors the end-to-end service being put together by the likes of Quindell Portfolio so that insurers can outsource claimant work.

Innovation Group – a listed company whose turnover in 2011 was £176m – will provide first notification of loss (FNOL) and repair management services, while DAC Beachcroft’s motor claims team will handle the claims. The two organisations will tender jointly to secure new contracts.

As well as dealing with litigated claims, the offering will help insurance companies reach settlements with third-party claimants before they have appointed a solicitor – an increasingly prevalent practice condemned by claimant lawyers.

Chris Charles, director of strategic programmes at DAC Beachcroft, said: “Our motor claims-handling team has worked with various FNOL suppliers over the last two years but we felt the time was right to create a closer relationship with Innovation Group.

“Although this is early days, we are confident that being able to offer a more integrated claims-handling solution for clients will give us a competitive advantage in a marketplace where demands are constantly changing.”

Mr Charles told Legal Futures that insurers are increasingly asking law firms to become involved earlier in the claims process, hence the need to provide an end-to-end service. He said that while large insurers are not looking to outsource this kind of work, specialist insurers and corporate self-insureds are.

Ian Bowen, sales and marketing director at Innovation Group, added: “We’re committed to providing efficient and relevant commercial models to our clients. It’s no secret that insurers are facing tougher challenges than ever before; new risks and audiences. We need to be sure that we’re continuing to innovate so that our customers can stay ahead of the game.

“This partnership with DAC Beachcroft is another leap toward fulfilling these commitments. It provides insurers with more efficient claims processes and ultimately lowers the cost of claims.”