The PI Market
The PI market has been broadly static in recent years at just under one million claims per annum. However, we anticipate a softening in the overall market as a result of a reduction in Road Traffic Accident (RTA) claims caused by the cumulative impact of prior legislative change which has resulted in demand uncertainty.
The industry has seen a 4% decline overall across all claim types in 2018, with RTA volumes suffering the largest percentage drop at 5%. Despite this, NAH is pleased to have been able to increase its enquiry rate year on year, which has been instrumental in enabling it to maintain its market share, bringing this.
There has been an apparent decline in Employer Liability cases but this is attributed to a significant reduction in noise induced hearing loss (NIHL) cases rather than an overall reduction in these claims. NAH has deliberately not been active in the volume NIHL market due to concerns about the nature of some claims and so its value to Panel Law Firms (PLFs). There has been a marked increase in claims categorised as “other” and this is driven by a spike in foreign, gastric illness claims which is an area that NAH is not engaged with.
External factors such as ministerial changes and Britain’s intended exit from the European Union have created increased uncertainty about the implementation of reforms proposed by the former Chancellor of the Exchequer. The delay in progressing the Civil Liability Bill will inevitably push out the timelines for regulatory change.
1. IRN Research, UK Legal Services Market Report, March 2018 and IRN Medico-Legal Insurance Services Report, February 2018 2. Management Information, March 2018