UK Personal Injury Litigation 2017

Summary

Personal injury sector continues its turbulent course of market-changing reform, with legislative, legal, and regulatory forces at work. While the market was just beginning to settle and adjust post-Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), a second round of reforms are due to come into play. The Civil Liability Bill will raise the limit in the small claims track to £5,000 for road traffic accident (RTA) claims and £2,000 for all other personal injury claims. For RTA-related soft tissue injury claims it will additionally introduce claims tariffs and ban pre-medical offers. However, any benefits from upcoming reforms will be cancelled out by the change in the Ogden rate from 2.5% to -0.75%, which has increased claims costs for insurers.

Key points include in this report –
– The total number of personal injury claims recorded during 2016-17 has fallen by 0.3% to 978,816 year-on-year. Recorded claims in 2016-17 have dipped only marginally below the levels seen pre-LASPO in 2010-11.
– Motor claims rose by 1.2% in 2016-17, whereas employers’ liability and public liability claims declined by 15.2% and 7.8% respectively. Clinical negligence claims have remained flat year-on-year.
– Holiday sickness claims are an emerging area of personal injury claims but are not expected to last beyond six to 12 months, due to regulatory clampdown.

Critical success factors:
– Holistic regulatory change: Insurers will be unable to deliver rate savings to customers despite proposed reforms unless the Ogden rate is reviewed. Regulation must be holistic and ensure claimants receive the correct level of compensation, while also tackling whiplash in order to reduce the cost of insurance.
– Small claims track: More claims will be processed through the small claims track following reforms that will raise the small claims track limit. It should be ensured that the process is streamlined and efficient, and customers still have access to representation.

The report “UK Personal Injury Litigation 2017” provides an in-depth study into the claims landscape of the personal injury market, which covers motor, employers’ liability, public liability, and clinical negligence. It explores the change in claims numbers over time and in relation to reforms such as LASPO. It also discusses upcoming regulatory changes such as the Civil Liability Bill and the discount rate, and the future impact these will have in the personal injury space. The role of CMCs and solicitors is explored and how this is likely to change in future. The report has chapters focused specifically on motor and employers’ liability areas of personal injury.

Companies mentioned in this report: Thompson, ABTA, Admiral, Aviva, Direct Line, LV=, Allianz, Ageas, Slater & Gordon, Parabis.

Scope

– The total number of personal injury claims recorded during 2016-17 has fallen by 0.3% to 978,816 year-on-year. Recorded claims in 2016-17 have dipped only marginally below the levels seen pre-LASPO in 2010-11.
– Motor claims rose by 1.2% in 2016-17, whereas employers’ liability and public liability claims declined by 15.2% and 7.8% respectively. Clinical negligence claims have remained flat year-on-year.
– Holiday sickness claims are an emerging area of personal injury claims but are not expected to last beyond six to 12 months, due to regulatory clampdown.

Reasons to buy

– Be prepared for how upcoming legislation will impact personal injury insurers, CMCs, and solicitors.
– See how claims numbers are changing across the personal injury market and by specific insurance type.
– Discover emerging areas of personal injury claims.