Insurance law firm Keoghs has confirmed it has put 41 of its employees at risk of redundancy.
The decision follows a restructure of its counter-fraud service (CFS) division and has been linked to the personal injury reforms that came into force in 2013.
The potential redundancies will fall mainly in its Coventry office and encompass both fee-earners and support personnel.
In a statement, the firm, which has its headquarters in Bolton, said it has continued to grow market share in the defendant insurance sector, especially since its appointment to the Allianz legal panel.
But following the introduction of legal and process reforms for PI claims in early 2013, ‘market requirements’ for insurance fraud work have reduced.
A spokesman for Keoghs said: ‘The post-reforms market environment has yet to stabilise, but it is clear that insurers’ ongoing counter-fraud requirements are going to be significantly different to what they were 12 to 18 months ago. It is regrettable that we have to lose colleagues from our business.
‘However, the restructure we are undertaking within our CFS division will give us the agility needed to respond cost effectively and continue to thrive in a rapidly changing market.’
He added that Keoghs is currently recruiting to fill 51 roles across the business and will continue to employ 248 in the CFS division out of a total workforce of almost 1,200.
The personal injury sector went through considerable change in the first half of 2013, with the Legal Aid, Sentencing and Punishment of Offenders Act coming into force in April and fixed fees for RTA Portal cases more than halved a month later.