Road traffic accident (RTA) claims and industrial accidents and injuries―both staples of the personal injury market―have been declining in the past few years, and this trend continued in 2018, according the UK Personal Injury Market Report 2019, the fourth annual report from IRN Research. Moreover, annual value growth throughout the entire £4bn per year personal injury market was only 2.4% in 2018.
The leading firms are high volume litigation services. The sector as a whole is consolidating, with larger players buying up smaller firms. The report’s authors predict this trend will increase next year in response to legislative changes due in April 2020 such as an increase in the small claims limit, fixed recoverable costs for whiplash claims and an online portal for claims submitted by individuals. Larger firms will be able to make the necessary investment in technology, case management systems, marketing and acquisitions to deal with the changes.
David Mort, IRN Research director, said: ‘The larger firms have identified a route to navigate the regulatory changes and this involves investment in IT and improving operating efficiencies, coupled with reducing their dependency on RTA claims, moving towards more high-value claims and expanding related services such as rehabilitation services.
‘Most of these firms also have the financial resources to cope with the changes. Competitive pressures are increasing for smaller firms and they just don’t have the financial leeway to change their business models.’
