UK Personal Injury Litigation 2018

Table of Contents
1. EXECUTIVE SUMMARY 2
1.1. Market summary 2
1.2. Key findings 2
1.3. Critical success factors 2
2. THE PERSONAL INJURY CLAIMS MARKET 7
2.1. Introduction 7
2.2. Reforms are set to shake up the personal injury market 7
2.2.1. Changes to calculating the Ogden discount rate are set to benefit insurers 7
2.2.2. The Civil Liability Bill paves the way for the introduction of injury tariffs 8
2.2.3. Pre-medical offers will no longer be available on RTA whiplash claims 9
2.3. Proposed RTA claims changes will increase the Small Claims Track limit 10
2.4. Summary of proposed changes 10
2.5. The impact of LASPO on the claims market 11
2.5.1. The number of claims has continued to fall post-LASPO 11
2.5.2. Motor-related injuries are the main driver of personal injury claims 13
2.6. Claims dropped considerably in 2017-18 compared with the previous 12 months 14
3. FRAUD IN THE PERSONAL INJURY MARKET 15
3.1. Fraudulent claims are a major concern - but the number of detected cases fell slightly in 2016 15
3.1.1. Fraud in the personal injury space is well documented 16
4. CMCS FACE GREATER SCRUTINY 18
4.1. CMCs will be regulated by the FCA 18
4.1.1. The number of authorized CMCs continues to fall 18
4.1.2. CMCs will likely diversify in search of new claims markets 20
4.1.3. CMCs are facing closer examination than before 20
5. PERSONAL INJURY CLAIMS IN FOCUS: MOTOR 22
5.1. Total recorded motor claims have dropped by almost a fifth 22
5.1.1. Recorded claims fell by over 100,000 in 2017-18 22
5.2. The number of accidents on UK roads continues to fall 23
5.2.1. RTAs continue to decrease as UK roads get safer 23
5.2.2. Despite the falling number of RTAs, average premiums continue to rise 24
5.3. The motor claims market is most likely to be impacted by reforms 27
5.3.1. The Civil Liability Bill is targeted towards the motor claims market 27
5.3.2. Technology will impact the motor claims market considerably 27
6. PERSONAL INJURY CLAIMS IN FOCUS: PUBLIC LIABILITY 28
6.1. Claims related to public liability increased in 2017-18 28
6.1.1. The number of claims recorded increased for the first time in four years 28
7. PERSONAL INJURY CLAIMS IN FOCUS: EMPLOYERSÂ’ LIABILITY 31
7.1.1. EmployersÂ’ liability claims have continued to fall 31
7.1.2. The total number of settled employersÂ’ liability claims has tumbled 34
7.1.3. Workplace injuries are continuing to decline 34
8. APPENDIX 37
8.1. Abbreviations and acronyms 37
8.2. Bibliography 37
8.3. Further reading 38

List of Tables
Table 1: New tariffs to be introduced for RTA soft tissue injury claims 9
Table 2: Summary of proposed changes to the UK claims market 11
Table 3: UK claims recorded and settled, 2010-18 12
Table 4: Growth in total claims recorded and settled, 2016-18 14
Table 5: The number of authorized CMCs operating in the UK and market turnover, 2011-17 19
Table 6: The growth of average premiums and claims in the motor insurance market, 2013-17 26
Table 7: The total number of public liability claims recorded and settled, 2010-18 30
Table 8: The total number of employers’ liability claims recorded and settled, 2010-18 33

List of Figures
Figure 1: The introduction of LASPO stifled growth in the number of claims recorded 12
Figure 2: Motor injuries dominate the claims landscape 13
Figure 3: The volume of claims fraud is considerably higher in a post-LASPO market 16
Figure 4: The number of authorized CMCs continues to decline 19
Figure 5: The number of visits undertaken by the CMR fell in 2016-17 21
Figure 6: Total motor claims recorded fell considerably in 2017-18 23
Figure 7: The number of RTAs continues to fall 24
Figure 8: Average motor premiums continue to increase 25
Figure 9: The public liability claims market experienced an increase in the number of claims 29
Figure 10: Employers’ liability claims continued to fall in 2017-18 32
Figure 11: The average cost of claims for the employers’ liability market continues to fall 34
Figure 12: The number of workplace injuries continues to decline 35
Figure 13: Over the review period both injuries lasting over seven days and major injuries declined 36

SECONDARY RESEARCH
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.

PRIMARY RESEARCH
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.

MARKET ENGINEERING
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.

EXPERT VALIDATION
The market engineered data is verified and validated by a number of experts, both in-house and external.

REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.