Is it worth remaining in claimant personal injury?

is it worth remaining in claimant personal injury?

Over the past decade, claimant personal injury lawyers have faced a myriad of challenges, making their professional journey far from smooth. From legal reforms to increased competition and changes in client expectations, the landscape has evolved significantly. As a result, some legal practitioners in this field are now questioning whether it is still worth staying in the claimant personal injury market. This introspective examination comes as they seek to balance the inherent impact of advocating for injured individuals with the practical realities of operating in a highly competitive and evolving legal environment. Recovery First explore the hurdles that claimant personal injury lawyers have encountered and the factors contributing to their contemplation of this critical decision.

Reasons for leaving the claimant personal injury market

Despite personal injury claims being prominent in litigation, several factors contribute to law firms deciding to move away from the claimant personal injury sector, some of which are listed below:

Competitive pressure and overcrowded market: The personal injury market has become highly competitive, with numerous law firms competing for clients and cases. Intense competition can compel personal injury firms to invest heavily in marketing, advertising, and client acquisition strategies to maintain a steady caseload. However, if a firm faces challenges in securing sufficient cases or perceives the market as overcrowded, it may opt to focus on other areas of law where growth opportunities and profitability appear more promising.

Impact of law reforms: Various reforms in the legal landscape have significantly affected personal injury solicitors since 2013. Reforms such as the Jackson Reforms introduced fixed costs for personal injury claims, and later, the whiplash reforms further changed the handling of whiplash claims, introducing a tariff system and expanding the small claims track limit for road traffic personal injury claims. These reforms have restricted the amount of profit costs solicitors can recover, leading to reduced profits and cash flow limitations for those working on such cases. The upcoming extension of the fixed costs regime in October 2023 may be the final nail in the coffin for some personal injury law firms.

Professional Indemnity Insurance (PII) challenges: Obtaining professional indemnity insurance (PII) has become increasingly difficult for personal injury solicitors. Escalating costs of PII, especially for personal injury lawyers, are driven by factors such as the growing complexity of personal injury law, rising claims against solicitors, and the high perceived risk associated with the field. Some insurers may even be hesitant to provide coverage to personal injury solicitors, further complicating matters and hindering their ability to operate.

 

Reasons for staying in claimant personal injury

 

Staying in the claimant personal injury market can be a viable and rewarding option for lawyers for various reasons including:

Social impact and advocacy: Personal injury lawyers play a crucial role in seeking justice and compensation for individuals who have suffered injuries or harm due to the negligence of others. Lawyers may decide to stay in this market so that they can continue to make a positive impact on the lives of their clients, helping them navigate challenging times and secure the compensation they deserve.

Expertise and experience: Solicitors who have specialised in claimant personal injury law often possess valuable expertise and experience in handling complex cases. This knowledge can be a competitive advantage, allowing them to provide high-quality legal services to their clients.

Client relationships: Over the years, personal injury solicitors build strong and trusting relationships with their clients. These connections can lead to repeat business, referrals, and a reputation for being a reliable and compassionate legal advocate.

Financial rewards: Despite the challenges posed by legal reforms and competition, successful personal injury cases can still yield substantial profits for law firms. A consistent track record of favourable outcomes can lead to a steady caseload and financial stability.

Market differentiation: Specialising in claimant personal injury law can help law firms stand out in a crowded legal marketplace. Focusing on a niche area demonstrates expertise and commitment, attracting clients seeking knowledgeable representation.

Diversification within personal injury: Personal injury law encompasses a wide range of cases, including road traffic collisions, workplace injuries, medical negligence, and more. Solicitors can diversify their practice within the personal injury market, targeting higher value cases and mitigating risks associated with relying solely on one type of case.

Personal fulfilment: For many lawyers, personal injury law can be personally fulfilling, providing a sense of purpose in helping injured individuals seek justice and recover physically, emotionally, and financially.

 Some firms opting to remain in claimant personal injury may wish to consider a merger or takeover of another firm. It is clear to see in a consolidating market, that larger firms have more power to compete.

 

How can Recovery First assist?

 

Whether you decide to exit the claimant personal injury market, or close your firm completely, Recovery First can assist you in the run-off of your files by placing them with an approved personal injury firm on our panel.

Moreover, we can assist in situations where firms decide to remain in the market and restructure or merger their firms.

We provide a solution for insolvency practitioners, accountants, restructuring and corporate recovery specialists helping law firms to withdraw from any legal market.

We guarantee 100% confidentiality for all clients. If you would like to find out more about Recovery First’s process, feel free to get in touch today.

As each project is unique; the flexibility of our model allows us to bespoke a solution to ensure the best outcomes are achieved utilising the specialist expertise of a combination of our panel law firms to ensure maximum value is recovered for the WIP assets.

It's never too late to speak to Recovery First. Contact us now in the strictest confidence

Sally Dunscombe:

sally.dunscombe@recoveryfirst.co.uk

David Johnstone:

david.johnstone@recoveryfirst.co.uk

Telephone:

01357 440140

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