The legacy of LASPO

Print This Post

2 June 2015


Posted by David Vine, business development manager at Legal Futures Associate Allianz Legal Protection

Vine: rise of the consolidator

Vine: rise of the consolidator

As the post LASPO dust finally starts to settle, there’s been a lot of coverage about the winners (if there are any) and the losers in the new landscape.

Is anyone happy? Well, defendant liability insurers are bemoaning the fact that claim numbers are back to pre-quarter one 2013 levels and that the predicted savings haven’t yet materialised.

Equally claimant law firms are struggling to make general personal injury and fast-track claims pay. As a result redundancies, mergers and acquisitions are on the rise.

I and my colleagues are currently holding our collective breath to see what will really happen once the pre-LASPO work in progress finally dries up. Will there really be carnage?

Unfortunately I can’t see the future. However, what I do see are parallels with the insurance broking market of the early 2000s.

At that time, compliance and regulation were the main drivers for small brokers looking for an escape route. As a result we saw the rise of the consolidator (for Slater & Gordon read Towergate and others) in which broking giants were able to leverage their buying power and obtain greater financial returns. So, will the likes of Slater & Gordon dominate the personal injury marketplace? Only time will tell.

What I am a starting to see, though, is that the law firms with a clear strategy and who concentrate on specific sectors are making the most of their expertise and are moving ahead. They appear however, to be in the minority and I believe that it is only just dawning on the partners of some firms that they should have made some painful decisions two years ago.

Past failures to act regarding resource and process could mean that instead of being masters of their own destiny, someone else could be calling the tune.

The next six months will prove crucial in shaping the future personal injury market. Claims aren’t going away and quite frankly the Jackson reforms weren’t about ridding the market of genuine claims but rather about reducing cost and speeding up process.

So, like most things in life, the fittest will survive. I do hope law firms have put in sufficient training.



Leave a comment

* Denotes required field

All comments will be moderated before posting. Please see our Terms and Conditions

Legal Futures Blog

Injury Prevention Day and the agenda for reform

Carson Kaye, Solicitors, London

This year APIL’s Injury Prevention Day falls as we anticipate a return of the Civil Liability Bill in the upcoming parliamentary session, as well as the resurrection of plans to increase the small claims court limit. APIL originally instigated Injury Prevention Day in 2015 on the third Wednesday of August as an occasion to highlight what our association is about, and to give people a better understanding of our values. A key part of APIL’s remit is to promote safety standards and reduce avoidable harm. This year, Injury Prevention Day and the agenda for reform are connected.

August 16th, 2017