Direct Line Group is planning to open its new legal services division on 3 March 2014 following receipt of its alternative business structure (ABS) license from the Solicitors Regulatory Association (SRA).

The insurance group has set up a new subsidiary, DLG Legal Services, which will provide an array of legal services to its customers in collaboration with Parabis Law.

The insurance firm, which applied in July 2013 to the SRA for authorization to offer legal services, will deliver services, including management of personal injury or non-injury claims and related debt recovery, employment and contract issues.

ABS licenses enables companies that are not law firms to offer legal services directly to customers.

Several insurers and brokers already hold ABS licenses, including Admiral, Ageas, DAS, BGL Group, the AA, and the Co-op among others.

Since the launch of the program in 2007, the SRA has approved 235 firms for ABS licenses.