PERTH’S newest insurance law firm, established by former partners of Jackson McDonald, has opened its doors for business.
Jarman McKenna has been established by Piet Jarman and David McKenna in partnership with Chris Rimmer and Rani Aria-Retnam.
The new firm plans to specialise in insurance law, where it will compete directly with Jackson McDonald as well as insurance specialists such as McAuliffe Williams, Mullins Handcock, Pynt & Partners and Srdarov Richards Burton.
Jackson McDonald, which has long had the largest insurance practice of any law firm in Perth, recently announced several new appointments.
These include the recruitment of Jenny Hawkins as a partner, giving the firm 12 partners in the insurance practice and a total of 28 partners.
The partners of Jarman McKenna believe a smaller, low-cost firm is a better arrangement for servicing the insurance market.
“The reality is that insurance doesn’t command the same billing rates as other practice areas,” Mr McKenna said.
“We think this is a better structure, where we don’t have the overheads that you inevitably get in a big firm.”
The pressure on billing rates has intensified over the past few years as a result of consolidation in the insurance industry, driven by big national firms such as Insurance Australia Group buying competitors, and the increased use of tenders.
Mr McKenna said the four new partners were also in agreement about the direction of the firm, which they aspire to make the leading specialist insurance firm in Perth.
They have a total of 13 professional staff, nearly all of who came from Jackson McDonald.
Mr Jarman said one of Jarman McKenna’s competitive strengths was that each of the partners was a barrister and solicitor
“We have all done a lot of court work. That gives us a competitive edge at the negotiating table,” he said.
“We know what arguments will succeed in the court, what evidence is going to be accepted.
“It also means that we have a good understanding of the client’s business because we have been dealing with them for so long on a continuous basis.”
Mr Jarman said this could also lead to cost savings, since they avoid the ‘double handling’ that occurred each time solicitors had to brief a barrister.
Mr McKenna said the firm’s specialist focus helped it stay abreast of changing legislation.
It also meant the firm was well placed to advise clients, for instance on the merits of pursuing a case through the courts as opposed to seeking a settlement.
The company has started with a substantial client base including QBE Mercantile Mutual, Allianz, GIO, Suncorp and Challenge Bank.
