Lyons Davidson, the Bristol-headquartered national law firm, is looking to capitalise on its leading position in the UK insurance sector after securing a £5m working capital facility.
The firm provides legal services to consumers on behalf of its insurance partners, including blue-chip brands such as LV=, Admiral, Saga and Direct Line. 
It specialises in personal injury and civil law claims, in addition to providing consumer and business, defendant and recoveries legal services and claims in Scotland.
The loan from midmarket lender OakNorth Bank will enable Lyons Davidson to build market share by harnessing the latest technology.
The firm, which employs more than 650 people in Bristol and offices in Leeds, Solihull, Cardiff and Edinburgh, has used advanced technology since it was launched in 1927 to make it a key differentiator to other legal services providers in the market.
Technology has been central to the success of its partnership model with insurance operators.
Government reforms of personal injury claims, which come in to effect at the end of this month, are also expected to lead to more market consolidation, with Lyons Davidson well positioned in the legal expense insurance sector to work closely with insurers in the new environment.
The reforms will reduce the claims lifecycle and also the working capital cycles of businesses such as Lyons Davidson.
It is also likely to lead to increased demand for Lyons Davidson’s services, as insurers consolidate away from more traditional providers unable or unwilling to provide efficient technology-based solutions. 
Lyon Davidson is also enjoying significant growth in its civil division, securing opportunities with household and commercial legal expense insurers – and the new facility will provide the working capital to support this expansion.
While Covid-19 lockdowns led to a decline in claims volumes last year, the insurance sector is expected to rebound over the next five years.
Lyons Davidson managing director Mark Savill said: “Since our launch almost 50 years ago, we’ve focused on growing a business that provides outstanding legal service which is accessible and affordable to clients with a strong digital customer journey.
“The last year has been extremely challenging for the industry as Covid-19 lockdowns led to a significant reduction in claims volume.
“However, with new government reform coming into effect at the end of this month, there’s a unique opportunity for tech-native firms like ours that can also deliver a high level of customer service, to gain additional market share and further strengthen relationships with our insurance partners.
“We’re therefore grateful to the team at OakNorth Bank, who were able to move quickly to ensure we got the funding in time for the new reform coming into effect.”
Launched in September 2015 and founded by entrepreneurs, London-based OakNorth Bank provides fast, flexible and accessible debt finance to what it calls the UK’s ‘missing middle’.
OakNorth Bank director of debt finance Stuart Blair added: “The upcoming industry reform will likely lead to increased consolidation in the market and allow firms such as Lyons Davidson to bill far earlier, improving their working capital cycle.
“Due to its large scale and technology expertise, the business is well-positioned to benefit in a consolidating market.
“Lyons Davidson has been with its current funder, Lloyds, for over 30 years, so this transaction is a great example of a challenger bank winning over a traditional high street lender.”
