The insurance sector could face problems of its own if the pattern of law firms, doing more for less, continues. Dwindling numbers of law firms means less choice and poor quality. The anticipated shortfall in specialists could eventually lead to experts being able to charge extortionate rates. The industry's response is to argue that the legal profession needs to be overhauled to promote an efficiency drive. Further panel cuts and in-house schemes may be the next wave of measures.
Smaller firms face bankruptcy unless they carve niche areas or forge strategic alliances.
In fact, perhaps they should be smiling. After all, if there are fewer players, there's less competition.