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UK Personal Injury Litigation 2018

UK Personal Injury Litigation 2018

Summary

The personal injury market is set to undergo further reform, with both the government and regulators keen to crack down on the growing compensation culture that has become particularly evident in the motor claims market. Attempts to reform the claims landscape through the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) - which came into force in 2013 - had a limited impact. The government has responded to this by proposing further reforms through the Civil Liability Bill, which focuses heavily on claims relating to whiplash injuries caused by road traffic accidents (RTAs).

Previous changes to the Ogden discount rate from 2.5% to -0.75% increased the cost of claims to insurers. But this looks set to change, with the Ogden rate to be reviewed and many within the market believing it will fall between 0% and 1%.

The report UK Personal Injury Litigation 2018, is 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 change such as the Civil Liability Bill and the Ogden discount rate, and the future impact these will have in the personal injury space. The role of claims management companies and solicitors is explored, and the report has chapters focused on motor, employers’ liability, and public liability as specific areas of personal injury.

Key Findings included in the report -

  • The total number of personal injury claims recorded in 2017-18 fell by 16.9% to 813,615 - the lowest number of recorded claims in the last eight years.
  • Motor injury claims are still the most common form of personal injury claim, accounting for 79.8% of total personal injury claims in 2017-18. While this is unlikely to change drastically, the incoming Civil Liability Bill is targeted towards reducing the number of motor-related personal injury claims.
  • Holiday sickness-related claims were previously considered to be a potential “new whiplash” by insurers, with fears claims management companies would look to exploit legal loopholes relating to fee caps. However, regulators responded quickly to prevent a sudden surge in these claims.
Companies Mentioned: ABTA, Aviva

Scope
  • The total number of personal injury claims recorded in 2017-18 fell by 16.9% to 813,615 - the lowest number of recorded claims in the last eight years.
  • Motor injury claims are still the most common form of personal injury claim, accounting for 79.8% of total personal injury claims in 2017-18. While this is unlikely to change drastically, the incoming Civil Liability Bill is targeted towards reducing the number of motor-related personal injury claims.
  • Holiday sickness-related claims were previously considered to be a potential “new whiplash” by insurers, with fears claims management companies would look to exploit legal loopholes relating to fee caps. However, regulators responded quickly to prevent a sudden surge in these claims.
Reasons to buy
  • Be prepared for how upcoming legislation will impact personal injury insurers, claims management companies, 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.


1. EXECUTIVE SUMMARY
1.1. Market summary
1.2. Key findings
1.3. Critical success factors
2. THE PERSONAL INJURY CLAIMS MARKET
2.1. Introduction
2.2. Reforms are set to shake up the personal injury market
2.2.1. Changes to calculating the Ogden discount rate are set to benefit insurers
2.2.2. The Civil Liability Bill paves the way for the introduction of injury tariffs
2.2.3. Pre-medical offers will no longer be available on RTA whiplash claims
2.3. Proposed RTA claims changes will increase the Small Claims Track limit
2.4. Summary of proposed changes
2.5. The impact of LASPO on the claims market
2.5.1. The number of claims has continued to fall post-LASPO
2.5.2. Motor-related injuries are the main driver of personal injury claims
2.6. Claims dropped considerably in 2017-18 compared with the previous 12 months
3. FRAUD IN THE PERSONAL INJURY MARKET
3.1. Fraudulent claims are a major concern - but the number of detected cases fell slightly in 2016
3.1.1. Fraud in the personal injury space is well documented
4. CMCS FACE GREATER SCRUTINY
4.1. CMCs will be regulated by the FCA
4.1.1. The number of authorized CMCs continues to fall
4.1.2. CMCs will likely diversify in search of new claims markets
4.1.3. CMCs are facing closer examination than before
5. PERSONAL INJURY CLAIMS IN FOCUS: MOTOR
5.1. Total recorded motor claims have dropped by almost a fifth
5.1.1. Recorded claims fell by over 100,000 in 2017-18
5.2. The number of accidents on UK roads continues to fall
5.2.1. RTAs continue to decrease as UK roads get safer
5.2.2. Despite the falling number of RTAs, average premiums continue to rise
5.3. The motor claims market is most likely to be impacted by reforms
5.3.1. The Civil Liability Bill is targeted towards the motor claims market
5.3.2. Technology will impact the motor claims market considerably
6. PERSONAL INJURY CLAIMS IN FOCUS: PUBLIC LIABILITY
6.1. Claims related to public liability increased in 2017-18
6.1.1. The number of claims recorded increased for the first time in four years
7. PERSONAL INJURY CLAIMS IN FOCUS: EMPLOYERS’ LIABILITY
7.1.1. Employers’ liability claims have continued to fall
7.1.2. The total number of settled employers’ liability claims has tumbled
7.1.3. Workplace injuries are continuing to decline
8. APPENDIX
8.1. Abbreviations and acronyms
8.2. Bibliography
8.3. Further reading
List of Tables
Table 1: New tariffs to be introduced for RTA soft tissue injury claims
Table 2: Summary of proposed changes to the UK claims market
Table 3: UK claims recorded and settled, 2010-18
Table 4: Growth in total claims recorded and settled, 2016-18
Table 5: The number of authorized CMCs operating in the UK and market turnover, 2011-17
Table 6: The growth of average premiums and claims in the motor insurance market, 2013-17
Table 7: The total number of public liability claims recorded and settled, 2010-18
Table 8: The total number of employers’ liability claims recorded and settled, 2010-18
List of Figures
Figure 1: The introduction of LASPO stifled growth in the number of claims recorded
Figure 2: Motor injuries dominate the claims landscape
Figure 3: The volume of claims fraud is considerably higher in a post-LASPO market
Figure 4: The number of authorized CMCs continues to decline
Figure 5: The number of visits undertaken by the CMR fell in 2016-17
Figure 6: Total motor claims recorded fell considerably in 2017-18
Figure 7: The number of RTAs continues to fall
Figure 8: Average motor premiums continue to increase
Figure 9: The public liability claims market experienced an increase in the number of claims
Figure 10: Employers’ liability claims continued to fall in 2017-18
Figure 11: The average cost of claims for the employers’ liability market continues to fall
Figure 12: The number of workplace injuries continues to decline
Figure 13: Over the review period both injuries lasting over seven days and major injuries declined

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