PI-Solutions says that it has experienced a “substantial increase” in enquiries from law firms looking to exit the personal injury (PI) market.
The firm, which helps solicitors off-load their PI work, says that it has noticed a surge in interest since August from multi-disciplinary firms with a PI department who were considering a strategic exit from the market via a traditional trade sale, or through an outsourced run-off.
David Johnstone (pictured), the managing director of PI-Solutions, believes that the changes implemented by the Jackson reforms have started to take real effect, resulting in the rise in enquiries.
“We formed to help firms wishing to make a strategic exit from the market achieve up to 100% of the value in their WIP,” he said.
He said that in just five months, one firm it had been working with, Delta Legal, had realised as much value from its WIP as it would have from an outright sale.
“And [it]still has another two and a half years left to run in respect of settling ongoing cases, at which point any remaining live matters will be capitalised.”
The changing nature of the PI market has also resulted in PI-Solutions growing its staff numbers and panel of law firms who pick up work from closed PI divisions.
Johnstone started running the business with support from his brother, IT manager Alan Johnstone, and the resource of eight panel law firms in December 2013.
Then in March of this year, the co-developer of PI-Solutions, Sally Dunscombe, re-joined the business as operations director. Chartered accountant Adele Brett and finance manager Michele Osbourne have also joined PI-Solutions to help manage the run-off of over 1,000 PI files.