National firm DWF has become the latest defendant specialist to cut jobs following reform of civil litigation.
The firm confirmed in a statement that it plans to make 26 redundancies in its Liverpool office.
These jobs comprise 15 secretary roles, six solicitors, four paralegals and one analyst.
Managing partner and chief executive Andrew Leaitherland (pictured) said all insurance law firms have experienced a decline in the number of motor fraud instructions since the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act in April 2013.
'Combined with efficiencies we've generated through centralisation and IT investments, this has meant that less admin support is required in our Liverpool fraud, intel and motor teams,' he said.
The firm held a consultation on redundancies earlier this year and said it has found alternative roles in the business for some of those affected.
It is also holding workshops for staff members to help them find alternative jobs.
DWF is the latest insurance law firm to have to reduce headcount after seeing a reduction in work.
In January, Keoghs said it was putting 41 of its employees at risk of redundancy and blamed 'market requirements' for the move. The firm noted that counter-fraud requirements were 'significantly different' to 12 months before.
In July, DAC Beachcroft closed a Manchester office, putting 65 people at risk of redundancy in its claims validation team, again citing 'market conditions' for the reduced headcount.