Personal Injury Market to Grow
Amid controversial reforms to current Ministry of Justice rules over compensation claims and whiplash cases, there are reports that the personal injury market is ready to increase by a modest 1.6% between now and the next 4 years.
The report is based on work conducted by a Coventry based market research consultancy firm IRN Research.
According to media posts online, this market research agency said that the personal injury compensation sector, which includes a range of injuries occurring in road traffic accidents, pedestrian accidents, slips and falls, work accidents, and burns and scalds will grow modestly in value terms. Perhaps the growth is too modest. Details were explained as follows:
It is envisaged that between now and into 2018 there will be a slow increase in claims but then this will decline in the year 2019 because the Government’s low value claims reforms via the Ministry of Justice will begin to have a negative influence. For example, because it will be much harder to claim for a personal injury like whiplash, people simply won’t claim or numbers of claims will be depressed.
Then as the market enters 2020 and the new rules have been accepted and understood, it is likely to see renewed modest value growth. However, the caveat is that the prediction says the underlying volumes will continue to decrease.
Across the legal industry there are strong fears that the personal injury industry will be seriously damaged by the proposed MoJ reforms. A number of prominent politicians and pressure groups and charities have all criticised the proposals to the ways injury claims are made.
The personal injury market – including clinical negligence – is worth nearly £4 billion annually. It’s a market that insurance companies are happy to see declining especially at the expense of the claimants.
To understand more about these changes to personal injury compensation claims see this article: