Fixed recoverable costs
Rising trends
What can businesses do?
For example, another rising trend we are seeing is where claims start off being lodged via the low-value (sub £25k) protocol in the portal, where it often makes financial sense for insurers to keep costs low by admitting liability, even where there may have been contributory negligence on the claimant’s part. The claim will then be dropped in the portal, while the claimant’s solicitors take their time to build a case for maximum damages and costs, leaving the insured in a disadvantageous position, with no control over how long the claims process will take.
While the planned increase in fixed costs to £100k starting in October should help to change behaviours in this respect, it will be some time before we start to see this happen as the uplift is being brought in gradually and will only apply to personal injury accidents occurring on or after 1 October 2023. In view of the 3 year limitation period permitted for the issue of proceedings, it will take a few years to work through the backlog of claims where accidents occur before that date.
Therefore, it’s vital that businesses and insurers develop strategies and tactics of their own to mitigate the impact of EL / PL claims inflation.
Businesses often seek to protect their insurance premiums by self-funding the initial insurance deductible themselves, but as claims inflation escalates, holding the necessary reserves can put extreme strain on cashflow. So, it’s more essential than ever to prevent accidents (and therefore claims) from occurring in the first place via well-designed risk management processes. If an accident does happen, proactive intervention at an earlier stage (for instance by conducting an occupational health investigation and/or offering support and assistance such as rehabilitation) can help avoid a claim being made. At Clyde & Co we’ve developed a guide to help direct and support businesses with their risk assessments and incident investigations, as part of the wider advisory guidance and training we give clients on these issues.
Strategies come to the fore
Get in touch
Some of these factors have been created by the general economic and political circumstances of the world we live in today, and some are being driven by strategies on the part of claimant solicitors.
Watch out for red flags that indicate that a claim in the portal might potentially end up being of higher value. If a claim is genuinely under £25k, it makes sense to make the right decisions in the portal to resolve it cost-effectively and avoid it going to litigation. However, if there’s a risk it could go above that threshold, be very careful about admitting liability.
Leveraging data is vital, to inform your Know Your Opponent (KYO) strategies. Data can give you intelligence about the types of firms of solicitors you are dealing with and what their likely behaviours will be from their past practices. For example, data analysis can tell you which firms are seeking to maximise claim values and which are taking a volume-driven approach and therefore want to turn cases over quickly. Such analysis can also suggest what the tipping point for settling is likely to be. Armed with this information, you can treat firms differently, depending on what approach will be most effective, and even create teams dedicated to dealing with specific firms.
What can insurers do?
Taking this kind of data-driven approach makes for more consistent, intelligence-led decision-making, rather than decisions being based on the subjective views of individual claims handlers.
Smart technologies are often required to collate and crunch this data to make it meaningful and accessible. Insurers are increasingly making use of tools which deploy artificial intelligence (AI) and automation to read, review and evaluate medical reports in minutes, allowing claims handlers to value the injuries reported in each case accurately and easily. Not only is this valuable on a case-by-case basis; using such tools also provides important insight that can be used more widely as we work with clients to develop suitable KYO and risk mitigation strategies.
Some of these trends have been gaining traction for some time, but in the current environment of rising costs and high inflation, the impact of failing to take action to contain damages could be severe. It all comes down to strategy: “opponents” have theirs, so it’s vital that businesses and insurers have them too.
A data-driven approach is key
The impact on accommodation claims is potentially a mixed bag: Adaptations will likely inflate due to increased labour costs and higher materials prices, while house prices are reported to be decreasing for the first time in over a decade, though the impact is likely to be highly variable between regions. On the other hand, economic pressures on landlords have caused rental prices to increase significiantly. A rental property might be a short-term resolution for a claimant, for example during an independent living trial, and it could be that schedules plead longer renting periods to maximise the compensation pot.
Accommodation
In cases with rehabilitation funding in place under the Rehabilitation Code or joint instructions, we have seen case managers reporting shortages of therapists, driving up the costs of those providers still on offer. This has been particularly acute in clinical neuropsychologists in and around London. This shortage also impacts time spent and overall cost to case management fees, as sourcing suitable suppliers takes longer.
Therapies
Loss of earnings
Care & case management
Some of these factors have been created by the general economic and political circumstances of the world we live in today, and some are being driven by strategies on the part of claimant solicitors.
Rising costs
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims
Taking this kind of data-driven approach makes for more consistent, intelligence-led decision-making, rather than decisions being based on the subjective views of individual claims handlers.
Smart technologies are often required to collate and crunch this data to make it meaningful and accessible. Insurers are increasingly making use of tools which deploy artificial intelligence (AI) and automation to read, review and evaluate medical reports in minutes, allowing claims handlers to value the injuries reported in each case accurately and easily. Not only is this valuable on a case-by-case basis; using such tools also provides important insight that can be used more widely as we work with clients to develop suitable KYO and risk mitigation strategies.
Some of these trends have been gaining traction for some time, but in the current environment of rising costs and high inflation, the impact of failing to take action to contain damages could be severe. It all comes down to strategy: “opponents” have theirs, so it’s vital that businesses and insurers have them too.
A data-driven approach is key
Get in touch
Taking this kind of data-driven approach makes for more consistent, intelligence-led decision-making, rather than decisions being based on the subjective views of individual claims handlers.
Smart technologies are often required to collate and crunch this data to make it meaningful and accessible. Insurers are increasingly making use of tools which deploy artificial intelligence (AI) and automation to read, review and evaluate medical reports in minutes, allowing claims handlers to value the injuries reported in each case accurately and easily. Not only is this valuable on a case-by-case basis; using such tools also provides important insight that can be used more widely as we work with clients to develop suitable KYO and risk mitigation strategies.
Some of these trends have been gaining traction for some time, but in the current environment of rising costs and high inflation, the impact of failing to take action to contain damages could be severe. It all comes down to strategy: “opponents” have theirs, so it’s vital that businesses and insurers have them too.
A data-driven approach is key
Get in touch
Taking this kind of data-driven approach makes for more consistent, intelligence-led decision-making, rather than decisions being based on the subjective views of individual claims handlers.
Smart technologies are often required to collate and crunch this data to make it meaningful and accessible. Insurers are increasingly making use of tools which deploy artificial intelligence (AI) and automation to read, review and evaluate medical reports in minutes, allowing claims handlers to value the injuries reported in each case accurately and easily. Not only is this valuable on a case-by-case basis; using such tools also provides important insight that can be used more widely as we work with clients to develop suitable KYO and risk mitigation strategies.
Some of these trends have been gaining traction for some time, but in the current environment of rising costs and high inflation, the impact of failing to take action to contain damages could be severe. It all comes down to strategy: “opponents” have theirs, so it’s vital that businesses and insurers have them too.
A data-driven approach is key
Taking this kind of data-driven approach makes for more consistent, intelligence-led decision-making, rather than decisions being based on the subjective views of individual claims handlers.
Smart technologies are often required to collate and crunch this data to make it meaningful and accessible. Insurers are increasingly making use of tools which deploy artificial intelligence (AI) and automation to read, review and evaluate medical reports in minutes, allowing claims handlers to value the injuries reported in each case accurately and easily. Not only is this valuable on a case-by-case basis; using such tools also provides important insight that can be used more widely as we work with clients to develop suitable KYO and risk mitigation strategies.
Some of these trends have been gaining traction for some time, but in the current environment of rising costs and high inflation, the impact of failing to take action to contain damages could be severe. It all comes down to strategy: “opponents” have theirs, so it’s vital that businesses and insurers have them too.
A data-driven approach is key
Taking this kind of data-driven approach makes for more consistent, intelligence-led decision-making, rather than decisions being based on the subjective views of individual claims handlers.
Smart technologies are often required to collate and crunch this data to make it meaningful and accessible. Insurers are increasingly making use of tools which deploy artificial intelligence (AI) and automation to read, review and evaluate medical reports in minutes, allowing claims handlers to value the injuries reported in each case accurately and easily. Not only is this valuable on a case-by-case basis; using such tools also provides important insight that can be used more widely as we work with clients to develop suitable KYO and risk mitigation strategies.
Some of these trends have been gaining traction for some time, but in the current environment of rising costs and high inflation, the impact of failing to take action to contain damages could be severe. It all comes down to strategy: “opponents” have theirs, so it’s vital that businesses and insurers have them too.
A data-driven approach is key
Get in touch
Get in touch
Get in touch
A data-driven approach is key
Get in touch
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims
Taking this kind of data-driven approach makes for more consistent, intelligence-led decision-making, rather than decisions being based on the subjective views of individual claims handlers.
Smart technologies are often required to collate and crunch this data to make it meaningful and accessible. Insurers are increasingly making use of tools which deploy artificial intelligence (AI) and automation to read, review and evaluate medical reports in minutes, allowing claims handlers to value the injuries reported in each case accurately and easily. Not only is this valuable on a case-by-case basis; using such tools also provides important insight that can be used more widely as we work with clients to develop suitable KYO and risk mitigation strategies.
Some of these trends have been gaining traction for some time, but in the current environment of rising costs and high inflation, the impact of failing to take action to contain damages could be severe. It all comes down to strategy: “opponents” have theirs, so it’s vital that businesses and insurers have them too.
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims
Take a look at our Clyde & Co Newton offering, AI solutions for casualty claims