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.’
