The UK Personal Injury Market Briefing 2017 is the fourth edition of an annual Legal Market Briefing from IRN Research and provides an overview of the UK personal injury and clinical negligence markets.
The personal injury market is a large market, worth almost £4bn annually but while it is still growing modestly in value terms, it is declining in volume terms. The rise in value represents a major rise in the value of clinical negligence claims and the rising average value of claims related to motoring accidents, employer liability accidents, and public liability cases.
The Government is intent on bringing in new legislation which will negatively impact on the market. The impact of these changes is likely to be felt from 2019 onwards. IRN Research expects the personal injury market to grow modestly in value terms between 2017 to 2018 but it will decline in 2019 as the new rules impact. Thereafter, once the new rules have bedded down, the market is likely to see renewed, modest value growth. Underlying volumes, however, will continue to fall.
Between 2017 and 2021, the market is expected to grow by just 1.6% in value terms, reflecting a decline in the market from 2017 to 2019 as the new reforms take effect.
An IRN survey of a panel of practitioners confirms the weaknesses in the sector with only 35% of those surveyed expecting increases in workload in the next 12 months (compared to 48% in 2016).
The briefing (61pp, PDF), is available directly from IRN Research, priced at £180. UK sterling price is plus VAT so total price is £216.
The briefing provides details of market size and historical trends; supply structure; key players; commentary on key issues; forecasts; sector practitioner survey; associations.
Established in 1991, IRN Research is a research agency with a focus on the legal services market. We offer a range of research services to law firms and suppliers to the sector. Services include client surveys, market studies, competitor intelligence, industry reports, and strategic studies.
Political and economic forces shape the market
As do business, social and technical developments.
The key legislative changes.
The market: rising value work contrasts with declining work volumes.
The future may not be too bright
The Main Types of Personal Injury Work.
Four main market participants.
The number of solicitors and legal companies.
The number of claims management companies declines.
POLITICAL AND ECONOMIC MARKET DRIVERS.
The Jackson Report defines the new legal framework for PI and CN cases.
LASPO puts Jackson into practice and marks a watershed for the PI market
Jackson reforms, Mark II
Some PI cases will move to the online court for small claims.
Other moves to look at and control costs in PI and CN cases.
Personal injury vs repair costs in motor insurance claims.
Moves to limit medical negligence costs.
Court fees rise.
The Government reforms claims reporting and medical evidence.
The Ogden Rate.
Stronger regulation of CMCs.
Nuisance calls remains a key concern.
The DoH rapid resolution and redress scheme (RRR)
BUSINESS, SOCIAL AND TECHNOLOGICAL MARKET DRIVERS.
PI imposes major financial, emotional and lifestyle costs on consumers.
The number of road traffic accidents in decline.
Employers (but not employees) report that workplace injuries are declining.
The number of serious workplace injuries is also in decline.
Just over 30,000 cases related to criminal injuries.
Cost budgeting becomes of crucial importance.
THE KEY PLAYERS.
Admiral Group PLC (Admiral Law Ltd/BDE Law)
Bolt Burden Kemp.
Bott & Co Solicitors Ltd.
Express Solicitors Ltd.
Neil Hudgell Ltd.
Irwin Mitchell Group.
Minster Law Ltd/BHL (UK) Holdings.
NAHL Group/National Accident Helpline Ltd.
Redde/NewLaw Solicitors/ Principia Law..
Simpson Millar LLP.
Slater and Gordon Group.
Stewarts Law LLP.
Thompsons Solicitors LLP.
MARKET SIZE AND TRENDS.
A market valued at almost £4 billion.
CMCs a declining force in the market
The volume of cases registered with the CRU declines.
Over £300 million recovered.
Number of PI claims heard in court declines in 2016.
Expenditure on NHS CN claims rises strongly.
Claims Portal figures.
Less PI work.
Potential changes to motor insurance rules.
New PI rules could cause a reduction in law firm numbers.
Legal expensive insurance to fill the gap.
More links between barrister and solicitors in PI work.
PI Practitioner Survey.