The outlook for the UK’s personal injury (PI) market remains bleak for the coming years, with specialist firms needing to undertake more and more measures to adapt to changes, according to research published this week.
The fifth edition of market research consultancy IRN Research’s annual report, UK Personal Injury Market Report 2018, provides a snapshot of the current PI landscape in the UK, estimated to be worth £4bn a year. This year’s findings show that by the end of 2017, the number of specialist PI firms was down to 730 from 833 the previous year, while just 630 claims management companies (CMCs) remained in operation despite their numbers exceeding 2,000 in 2012.
Among the most pressing concerns facing the sector are the legislative changes set to come into force in April 2020, including the increase of the small claims limit for PI claims, the introduction of fixed costs tariffs, and the rise of litigants in person. However, despite the poor outlook long-term, 45% of PI practitioners are expecting their workloads to increase over the next 12 months.
They are also predicting an increase in the number of mergers and acquisitions as smaller players leave the market, and increased investment in new technology to help deal with a workload made up of lower value claims. Some firms are also looking to broaden their offering by covering clinical negligence cases; however, the report highlights the mixed results of such a move, given the need for specialised expertise in dealing with such cases. Spending on digital marketing is on the up as more firms look to set up separately branded PI websites to increase market share.
The full report is available to purchase from www.irnresearch.com.
