Damian McPhun discusses the launch of Edesia Law with Legal Futures

A niche alternative business structure (ABS) specialising in defending professional negligence claims has launched this month, with investment from the insurance industry. Damian McPhun, managing director of Edesia Law, said "a number of corporate investors" from the insurance and financial services worlds had decided to invest.

His decision to set up the firm came after a number of insurers "expressed their frustration" about the way the market dealt with their claims, with the downward pressure on rates over the past 15 years leading law firms to commoditise services. "Some firms seem only concerned with getting bigger. It's all about costs and profitability and cases are not getting the same individual attention. There is a place for a smaller scale, more tailored approach to claims handling."

Formerly a partner at City insurance and construction firm Beale & Co, Mr McPhun said Edesia aimed to provide "clear early advice and strategy", particularly for mid-sized Lloyd's syndicates and managing general agents. The two main sources of claims Edesia handled were solicitors and independent financial advisers, with insurance brokers, accountants and construction professionals following.

"We've only been open for two weeks, but we've already got a huge amount of work across the professions," he said. "Things are very buoyant." Mr McPhun noted that small, specialised firms had been the way of the world in the insurance market until everything got bigger and more impersonal, and that Edesia was unusual in being a defence specialist with insurer backing rather than a claimant firm.