UK Personal Injury 2019: Consumer Research Report

1. Executive Summary    

• The next year – more DIY claims and consolidation for the leading brands    
• Incidents led by RTAs but accidents in a public place not far behind    
• Majority of claimants involve an insurer or a solicitor, or both    
• Over half of pay-outs are £5,000 or less so in the proposed small claims limit    
• A mix of funding but led by “no win, no fee” deals    
• Over half received the compensation they expected, or even more…     
• Almost half shop around for legal advice but almost as many do not    
• Speed of service and cost are the important factors in choosing a legal advisor    
• General satisfaction with the claims advice and the final outcome    
• Individuals dealing with their own claims is a concern for many    
• Direct marketing to consumers led by unsolicited phone calls    
• Survey responses point to increased awareness of leading PI brands    
• Claim volumes declining year-on-year but marginal increase in market value    
• Are claimants ready to deal with claims themselves after April 2020?    

2. Introduction    

• Overview    
• Methodology    
• Abbreviations    

3. Background    

• Over 7 out of 10 have been involved in a road traffic accident    
• Most think that more people are making claims now    
• DIY via the small claims court is not appealing, and not many trust insurers to pay the right amount    
• Online claims portal would be used by over 4 out of 10 adults

4. Personal Injury Claims    

• Insurers are involved in most RTA and whiplash claims    
• Insurers important when choosing a legal advisor but no one source dominates    
• The majority accept that whiplash is a genuine injury    
• A significant percentage of claimants did not consider a claim at first    
• Cold calling still a feature of the claims industry    

5. Claims Process    

• Range of advisors used, and most consider their credentials and accreditations    
• Fast-track claims are the largest group, but multi-track increasing    
• Most claims are settled out of court    
• Just over half state that the claims process was simple    

6. Claims Funding and Settlements    

• Most claim pay-outs are up to £5,000    
• Mix of funding options but “no win no fee” is still the most common method    
• Compensation paid - expectations met for most claimants    
• Legal expenses insurance – likely to be part of other policies or a membership    

7. Small Claims, Fixed Fees For Clinical Negligence Claims    

• DIY small claims - some LIPs would struggle in court and in negotiations    
• More in favour of fixed fees for clinical negligence claims than against    

8. Legal Services Providers – Selection and Satisfaction    

• Only a minority shop around when choosing a legal advisor    
• Speed of service and cost are most important to claimants    
• Claimant satisfaction levels with their advisor are relatively high    
• Most are satisfied with the general outcome but not the financial deal    

9. Awareness and Use of Personal Injury Brands    

• Awareness of leading brands increased in 2019    
• InjuryLawyers4U leads awareness of TV ads    
• Some consumer interest in specific non-legal brands 

10. Market Trends    

• Market value
• Case numbers and recoveries value declining in recent years    
• Over three-quarters of cases are RTAs, but numbers falling across all cases    
• Claims against the NHS have stabilised in the last three years    
• Claims Portal    

11. Future Developments    

• Research points to more DIY claims on the horizon but some consumer concerns

List of Figures
Figure 1 Survey sample – demographic breakdown
Figure 2 Personal injuries suffered, 2018-2019
Figure 3 Most recent type of injury suffered, 2018-2019
Figure 4 Consumer attitudes to personal injuries and claims, 2018-2019
Figure 5 Attitudes about pursuing a personal injury case, 2018-2019
Figure 6 Major types of injury or disease/illness suffered, 2018-2019
Figure 7 List of specific injuries/illnesses suffered, 2018-2019
Figure 8 Sources used to make a claim, 2018 -2019
Figure 9 Sources used to find a legal representative, 2018-2019
Figure 10 Proposed changes to the treatment of whiplash – consumer agreement, 2018-2019
Figure 11 The intention to claim for an accident or disease/illness, 2018-2019
Figure 12 Marketing contacts made in the previous 12 months, 2018-2019
Figure 13 Organisations contacted to settle a claim, 2018-2019
Figure 14 Accredited law firms/solicitors/barristers, 2018-2019
Figure 15 The nature of the claim, 2018-2019
Figure 16 How claims were completed, 2018-2019
Figure 17 Total claim payouts, 2018-2019
Figure 18 Deductions from the final compensation - summary, 2018-2019
Figure 19 Deductions from the final compensation – detailed data, 2018-2019
Figure 20 How claims are financed by type of settlement, 2018-2019
Figure 21 Expectations for the final compensation, 2019
Figure 22 Ownership of legal expenses insurance, 2018-2019
Figure 23 Ease of undertaking a case without legal advice, 2019
Figure 24 Ease of undertaking a case without legal advice, 2018-2019
Figure 25 Fixed recoverable fees for clinical negligence cases, 2018-2019
Figure 26 Claimants making a choice between providers, 2018-2019
Figure 27 Main drivers of advisor choice, 2018-2019
Figure 28 Rating of advisors by claimants (score between 1 and 5), 2018-2019
Figure 29 Detailed satisfaction ratings of advisors (%), 2019
Figure 30 Brand awareness of personal injury companies, 2018-2019
Figure 31 Brand awareness of personal injury companies – TV advertising, 2018-2019
Figure 32 Potential future use of consumer brands covering personal injury cases, 2018-2019
Figure 33 Cases with compensation payments registered with the CRU, 2012/2013-2018/2019
Figure 34 Settlements recorded by type, 2012/2013-2018/2019
Figure 35 Clinical claims dealt with and closed, 2010/11-2018/19
Figure 36 Number and value of settled claims on the Claims Portal, 2014/2015-2018/2019
Figure 37 Forecast value of the UK personal injury market (£bn), 2019-2022