Sharp declines have been recorded in employers’ liability and public liability claims, reflecting the start of a decline in noise-induced hearing loss claims, according to a new report.
The report, compiled by Verdict Financial and called UK Personal Injury Litigation 2016; The Turbulent Course of Market-Changing Reform Continues, has also found that settled claims remain significantly above pre-LASPO levels, meaning that insurance companies are still taking a hit on profitability due to the so-called LASPO spike in activity in 2013.
The report has also said that whiplash continues to account for the largest number of accident-related claims in the motor arena, although there are signs that the cost of dealing with these has been driven down successfully by the introduction of the LASPO regulations. Whiplash claims account for up to 70% of motor personal injury claims numbers.
Elsewhere in the study, Verdict Financial has predicted that the Government’s proposed increase to the small claims track limit could affect 70-80% of motor personal injury claims. The reform, along with the plan to eliminate General Damages for low value soft tissue injuries, could “have a potentially cataclysmic impact on the claimant sector,” said the report.
“They will crystallize the trends of consolidation and revenue diversification already in evidence.”
“The result is likely to be a small number of larger claimant representatives guiding consumers through the small claims track, and providing additional services such as rehabilitation,” it added.