UK Personal Injury Litigation 2008

Content

• Overview
• Catalyst
• Summary
• Executive Summary
  • The Number Of Personal Injury Claims Continued To Increase In 2007-08 Due To Rising Accident Claims
  • The Number Of Personal Injury Accident Claims Rose By Nearly 5% In 2007-08
  • The Number Of Personal Injury Disease Claims Fell By A Significant 31.7%
  • There Was Little Change In The Composition Of Personal Injury Claims
  • Motor Personal Injury Claims Are The Most Common Type Of Personal Injury Claim
  • The Number Of Motor Personal Injury Claims Rose By 6.4% In 2007-08
  • The Number Of Employers' Liability Claims Fell To A Five Year Low In 2007-08
  • Workplace Accidents And Work-Related Ill Health Dropped In 2006-07
  • The Total Number Of Non-Fatal Workplace Injuries Fell In 2006-07
  • Employment Tribunal Applications Continued To Increase In 2006-07
  • There Are Over 1,300 Firms Offering Personal Injury Claims Management Services
  • As Of February 2008 There Were 1,385 Firms Offering Personal Injury Claims Management Services
  • Spending On Marketing Personal Injury Legal Services Declined By 15.8% In 2007
  • National Accident Helpline, Injury Lawyers 4u And Bgr Bloomer Were The Leading Advertisers In 2007
  • Das Was The Largest Underwriter Of Legal Expenses Insurance In 2007
  • Das Insurance Was The Top Underwriter Of Legal Expenses In 2007, With An Increase Of 13.4% In Premium Income
  • Most Insurers Experienced An Increase In Legal Expenses Insurance Premium Income In 2007
  • The Ministry Of Justice Is To Implement A New Claims Process For Rta Claims Up To 10,000 And Raise The Fast Track Limit To 25,000
  • The Ministry Of Justice Is Going To Implement Several Major Changes To The Personal Injury Claims Process
  • The Claims Management Regulation Monitoring And Compliance Unit Was Set Up To Regulate The Sector In April 2007
  • The Fsa Has Begun Investigating Third Party Capture
  • The Number Of Personal Injury Claims Is Forecast To Rise Between 2006-7 And 2012-13
  • The Number Of Personal Injury Accident Claims Is Expected To Total 752,909 In 2013, Due To Relative Static Claims Numbers
  • Total Personal Injury Costs Are Estimated To Grow By 4.7% Per Year In The Forecast Period
  • Market Context
• Introduction
  • The Number Of Personal Injury Claims Continued To Increase In 2007-08 Due To Rising Accident Claims
  • The Number Of Personal Injury Accident Claims Rose By Nearly 5% In 2007-08
  • The Number Of Personal Injury Disease Claims Fell By A Significant 31.7%
  • Motor Personal Injury Claims Are The Most Common Type Of Personal Injury Claim
  • Most Personal Injury Claims Are For Accidents Rather Than Diseases
  • The Number Of Motor Personal Injury Claims Grew In 2007-08 Despite Continued Reductions In The Number Of Road Traffic Accidents
  • The Number Of Motor Personal Injury Claims Rose By 6.4% In 2007-08
  • Bodily Injury Claims Are The Most Expensive Type Of Motor Claims To Settle
  • The Average Cost Of A Motor Personal Injury Claim Vary From Year To Year
  • The Number Of Bodily Injury Claims Notified Has Risen By An Average Of 15.5% Each Year Since 2002
  • Motor Personal Injury Claims Costs Were Estimated To Be Around 4.5 Billion In 2007
  • Motor Claims Inflation Increased Significantly In 2006
  • The Number Of Road Traffic Accidents And The Number Of Casualties Both Fell In 2007
  • Road Traffic Accidents Continued To Decline In 2007
  • Road Traffic Casualties Have Fallen Even While Motor Claims Have Risen
  • The Largest Reductions In Casualties Has Come From Car Users
  • Employers' Liability Claims Did Not Contribute To The Growth In Personal Injury Claims In 2007
  • The Number Of Employers' Liability Claims Fell To A Five Year Low In 2007-08
  • The Cost Of Employers' Liability Claims Decreased By 37.8% In 2007 After Spiking In 2006
  • The British Coal Scheme Has Cost 3.4 Billion So Far, Although The Majority Of Payments Are For Minor Amounts
  • Workplace Accidents And Work-Related Ill Health Dropped In 2006-07
  • The Total Number Of Non-Fatal Workplace Injuries Fell In 2006-07
  • The Number Of Workplace Injuries As Reportable Under Riddor, Excluding Acts Of Violence, Decreased By 4.6%In 2006-07
  • The Total Number Of Workplace Injuries Was Estimated To Be 313,685 In 2006-07
  • Workplace Fatalities Increased In 2006-07
  • Total Work-Related Ill Health Decreased In 2006
  • Employment Tribunal Applications Continued To Increase In 2006-07
  • Ate And Bte Insurance Markets
• Introduction
  • Ate Insurance Covers The Claimant Against Legal Costs And Is Sold Via A Variety Of Parties
  • Ate Insurance Covers The Claimant In The Event That They Lose Their Case And Are Required To Pay The Costs Of The Other Side
  • Accident Intermediaries And Solicitors Sell Ate Policies To Claimants
  • Allianz, Brit, Das And Royal & Sunalliance Are The Major Providers Of Ate Insurance
  • Ate Insurance Policies Are Usually Sold Through Intermediaries
  • Bte Insurance Covers Claimants Against Legal Costs And Is Largely Sold As An Add-On To Car And Home Insurance
  • Bte Insurance Covers Consumers Against The Costs Of Legal Action They May Have To Bring
  • Bte Insurance Is Most Often Distributed As An Add-On To Car And Home Insurance
  • Awareness Of The Ate And Bte Market Remained Low In 2007
  • There Are Over 1,300 Firms Offering Personal Injury Claims Management Services
  • As Of February 2008 There Were 1,385 Firms Offering Personal Injury Claims Management Services
  • Most Companies Offering Personal Injury Claims Management Services Are Dedicated Claims Management Companies
  • Advertising For Personal Injury Legal Services Declined In 2007 As Smaller Players Cut Back
  • Spending On Marketing Personal Injury Legal Services Declined By 15.8% In 2007
  • There Is A Significant Gulf Between The Outlay Of The Top Players And Other Top 20 Players
  • National Accident Helpline, Injury Lawyers 4u And Bgr Bloomer Were The Leading Advertisers In 2007
  • Solicitors And Claims Management Firms Favored Mass Market Media In Their Bid To Generate Clients
  • Television Advertising Is An Attractive Means For Reaching Out To Potential Clients
  • Radio And Press Campaigns Were Also Used To Contact New Clients
  • Large National Brands Dominate The Industry And Are Mainly Dedicated Personal Injury Law Firms Or Managers
  • National Accident Helpline Reinforces Its Brand With Substantial Advertising Outlays
  • Injurylawyers4u Has Continued To Drive Substantial Volume To Its Member Firms
  • Bgr Bloomer Is A Law Firm Specializing In Personal Injury Litigation
  • Claims Direct Is Handling More Claims After Re-Launching The Brand On Television In 2007
  • Claims Direct Is Becoming A More Aggressive Player
  • Russell Jones And Walker Is Planning To Move To An Alternative Business Structure
  • Accident Advice Helpline Trades Under A Variety Of Brands
  • Accident Advice Helpline Trades Under A Variety Of Brands And Advertises Largely Via Television
  • Accident Advice Helpline Also Generates Business Through Referrals
  • Accident Line Was Formed In The Early 1990s And Ate Insurance Is Underwritten By Brit Insurance
  • The Accident Line Brand Was Formed In The Early 1990s By The Law Society
  • Ate Policies Provided Via Accident Line Are Underwritten By Brit Insurance
  • Das Was The Largest Underwriter Of Legal Expenses Insurance In 2007
  • Das Insurance Was The Top Underwriter Of Legal Expenses In 2007, With An Increase Of 13.4% In Premium Income
  • Most Insurers Experienced An Increase In Legal Expenses Insurance Premium Income In 2007
  • Fortis Has Become The Latest Major Insurer To Enter The Market With The Launch Of Legal Guard
  • Non-Company Market Players Have Been Active In The Legal Expenses Market
  • Regulation And Issues
• Introduction
  • The Ministry Of Justice Is To Implement A New Claims Process For Rta Claims Up To 10,000 And Raise The Fast Track Limit To 25,000
  • The Ministry Of Justice Is Going To Implement Several Major Changes To The Personal Injury Claims Process
  • The New Claims Process Is Intended For Rta Claims Up To 10,000 In Value And Stipulates A Quick Turnaround On The Behalf Of Claimant Lawyers And Defendant Insurers
  • The New Claims Process Is Intended For Rta Claims Of Up To 10,000 In Value
  • Under The New Process Insurers Will Have Less Time To Process Claims To Determine Fraud And Liability
  • A New Standard Claims Form Will Ensure All Relevant Information Is Efficiently Passed Between Parties
  • Fraud Could Increase As A Result Of Less Time To Study Claims
  • The New Process Will Include Fixed Recoverable Costs
  • The Advisory Committee On Civil Costs Will Review The Use Of Referral Fees
  • The Ate Market Will Not Be Significantly Altered By The Moj Reforms
  • Higher Fast Track Limits Of 25,000 Will Allow For Only A Small Proportion Of More Cases To Be Fast Tracked
  • The Government Plans To Keep The Small Claims Track Limit At 1,000
  • Claims Management Companies Have Changed Due To Regulation By The Government
  • The Claims Management Regulation Monitoring And Compliance Unit Was Set Up To Regulate The Sector In April 2007
  • The Code Of Conduct Has Required Claims Management Companies To Adopt Best Practices That Should Improve The Industry
  • The Code Of Conduct Covers A Range Of Small Issues That Had Plagued A Number Of Firms
  • Claims Management Companies Are Now Required To Hold Professional Indemnity Insurance
  • Regulation Of Claims Management Companies Has Lead To Corrections In The Behavior Of The Firms
  • Firms Are No Longer Able To Operate In An 'Ambulance Chaser Fashion'
  • The Regulator Will Continue To Work At Improving The Industry
  • The Regulator Has Been Active And Willing To Suspend Companies For Infractions
  • Other Sources Of Regulatory Or Legislative Changes To The Market Exist But Are More Limited
  • The Fsa Has Begun Investigating Third Party Capture
  • Mps Are Reviewing The Issue Of Pleural Plaques
  • Asbestos Cases Continue To Generate Legal Challenges And Potential Liabilities For Insurers
  • Future Decoded
• Introduction
  • The Number Of Personal Injury Claims Is Forecast To Rise Between 2006-7 And 2012-13
  • The Number Of Personal Injury Accident Claims Is Expected To Total 752,909 In 2013, Due To Relative Static Claims Numbers
  • Personal Injury Costs Will Rise To A Total Of 8.5 Billion In 2012
  • Total Personal Injury Costs Are Estimated To Grow By 4.7% Per Year In The Forecast Period
  • Market Conditions Will Remain Mixed Going Forward
  • It Is Unlikely That Claims Inflation Will Abate In The Foreseeable Future
  • Continued Improvements To Road And Workplace Safety Will Benefit Insurers With Lower Exposure To Liabilities
  • People Are Becoming More Litigious, Meaning More Accidents Will Result In A Personal Injury Claim Being Filed
• Appendix
  • Definitions
  • Accident Intermediaries:
  • Ate Insurance:
  • Bte Insurance:
  • Success Fees:
  • Recoverability:
  • Commercial Legal Expenses:
  • Premium Income Measures
  • Earned Premiums:
  • Net Earned Premiums:
  • Gross Earned Premium
  • Gross Written Premium:
  • Further Reading
  • Ask The Analyst
  • Datamonitor Consulting
  • Disclaimer
• List Of Tables
  • Table 1: Number Of Personal Injury Claims Made To General Insurers, Split By Accident And Disease, 2003-08
  • Table 2: Personal Injury Claims Split By Insurance Category, 2005-06 - 2007-08
  • Table 3: Number Of Personal Injury Claims Made To General Insurers, Split By Accident And Disease, By Insurance Category, 2007-08
  • Table 4: Number Of Motor Personal Injury Claims In The Uk, 2003-04 - 2007-08
  • Table 5: Average Motor Claims Payout And Percentage Of Claims With A Payment By Type, 2006
  • Table 6: Average Cost Of A Motor Personal Injury Claim, 2002-06
  • Table 7: Motor Bodily Injury Claims Volume And Average Amount, 2002-06
  • Table 8: Average Motor Claims Costs, 2002-06, ()
  • Table 9: Road Traffic Accidents In Great Britain, 1997-2007 (000s)
  • Table 10: Road Traffic Accident Casualties In Great Britain, 2003-07
  • Table 11: Road Casualties By Type Of Injured Party, 2006-07p
  • Table 12: Number Of Employers' Liability Personal Injury Claims Split By Accident And Disease, 2003-04 -
  • Table 13: Uk Employers' Liability Gross Claims Incurred, 2003-07 (m)
  • Table 14: Number Of Claims Made To The Dti And Total Compensation Paid For Respiratory Disease And Vibration White Finger Under The British Coal Scheme As Of March 2, 2008
  • Table 15: Profile Of Offers Made By The Berr To Claimants For Respiratory Disease Under The British Coal Scheme, Up To December 31, 2007
  • Table 16: Workplace Injuries Reportable Under Riddor, 2002-3 - 2006-07p
  • Table 17: Workplace Injuries Reportable Under Riddor, Excluding Acts Of Violence, 2002-03 - 2006-07p
  • Table 18: Total Estimated Workplace Injuries Reportable To The Hse, 2002-03 - 2006-07p
  • Table 19: Workplace Fatalities Reported Under Riddor, 2002-3 - 2006-07p
  • Table 20: Number Of Cases Of Occupational Disease And Work Related Mental Ill Health, 2002-06p
  • Table 21: Number Of Applications Registered By Employment Tribunals In The Uk, 2002-07
  • Table 22: Companies Applying For Authorization With The Ministry Of Justice (June 2007)
  • Table 23: Total Uk Personal Injury Services Advertising Spending 2005-07
  • Table 24: Top 20 Personal Injury Advertisers 2005-07 (000s)
  • Table 25: Top 20 Personal Injury Advertisers By Media, 2007
  • Table 26: Legal Expenses Gwp By Insurer, 2003-07 (000s)
  • Table 27: Forecast Number Of Personal Injury Accident Claims, 2006-07 - 2012-13f
  • Table 28: Uk Personal Injury Claims Costs, 2008e-12f (m)
• List Of Figures
  • Figure 1: The Number Of Accident Claims Registered With The Cru Increased By Nearly 5% In 2007-08 While The Number Of Disease Claims Dropped
  • Figure 2: The Number Of Employment Tribunal Applications Has Increased Steadily Since 2004-05
  • Figure 3: Personal Injury Claims Are Forecast To Increase Steadily Over The Next Five Years
  • Figure 4: The Number Of Accident Claims Registered With The Cru Increased By Nearly 5% In 2007-08 While The Number Of Disease Claims Dropped
  • Figure 5: Motor Related Claims Accounted For Over Three Quarters Of All Personal Injury Claims In 2007-08
  • Figure 6: Accident Claims Made Up The Majority Of Claims Across All Type Of Claim In 2007-08
  • Figure 7: Motor Personal Injury Claims Have Continued To Increase In Number
  • Figure 8: Bodily Injury Claims Are The Most Expensive Motor Claims To Settle, However The Percentage Of Claims That Are Awarded Payouts Is Low
  • Figure 9: The Number Of Motor Bodily Injury Claims Rose By 20.6% In 2006
  • Figure 10: Average Motor Claims Costs Have Risen Every Year Since 2002 In The Uk
  • Figure 11: Rtas On Roads In Great Britain Have Fallen Steadily Over The Last 10 Years
  • Figure 12: Motorists Were Less Likely To Have Been Injured In 2007, With All Rta Related Casualties Falling
  • Figure 13: Car Users Are The Principle Source Of Rta Casualties
  • Figure 14: Disease Claims In The Employers' Liability Market Have Fallen Dramatically Since 2002-03
  • Figure 15: Gross Claims For Employers' Liability Declined In 2007
  • Figure 16: Claims Above The Value Of 100,000 Represented The Smallest Proportion Of Claims Paid In 2007
  • Figure 17: The Number Of Workplace Fatalities Increased In 2006-07
  • Figure 18: The Number Of Work Related Illnesses Decreased In 2006
  • Figure 19: The Number Of Employment Tribunal Applications Has Increased Steadily Since 2004-05
  • Figure 20: Equal Pay Disputes Have Been A Major Factor In The Increase In The Number Of Employment Tribunals
  • Figure 21: Most Companies Applying For Authorization To Carry On Personal Injury Business Were Claims Management Companies
  • Figure 22: The Top 20 Legal Services Advertisers Constituted A Greater Proportion Of Total Marketing Expenditure In 2007
  • Figure 23: The Top Three Brands Significantly Outspent Their Rivals By A Large Margin In 2007
  • Figure 24: Tv Dominated The Marketing Of The Top 20 Advertisers In 2007
  • Figure 25: Injurylawyers4u Is A More Recognized Brand Due To A Successful Tv Campaign
  • Figure 26: Claims Direct Has Began A More High Profile Marketing Campaign In 2007
  • Figure 27: Personal Injury Claims Are Forecast To Increase Steadily Over The Next Five Years
  • Figure 28: Personal Injury Costs Are Forecast To Grow On Average 44.7% A Year