The PI Market
The PI market is large and fragmented with approximately one million claims per annum. Claims can be divided into three segments: Road Traffic Accident (RTA); non-Road Traffic Accident (non-RTA) and medical negligence.
Whilst over three quarters of the overall PI market comprises RTA claims, NAH’s focus remains on the higher margin, faster growing segments of medical negligence and non-RTA claims. These accounted for 76% of NAH’s total vetted enquiries passed on to Panel Law Firms in 2014.
The UK PI market is relatively flat, but medical negligence is growing at about 12% and non-RTA at about 7% pa. NAH’s estimated market shares are 1.9%1 in RTA, 11.6%1 in non-RTA and 5.8%1 in medical negligence. The regulatory environment is driving industry consolidation with a 41% reduction in the number of regulated claims management companies as at 31 March 20142.
The PI sector is subject to negative perceptions and is regularly singled out for poor marketing practices. National Accident Helpline continues to encourage our sector and other industries to act with integrity as demonstrated by our Stop Nuisance Calls campaign and the industry-led Ethical Marketing Charter initiative which was founded by NAH in July 2015. The Charter was launched with the support of other PI sector leaders in order to take a firm stand against unethical marketing. It demonstrates a collective commitment to tackling harmful practices and also challenges others in the sector to reform their approach.
1 Source: Compensation Recovery Unit analysis 2014
2 Source: Claims Management Regulator (CMR) Annual Report 2013/14