Between January and September 2013 the total number of personal injury lawyers/claim companies in the UK dropped hugely from 2,316 all the way to 1,485.
Personal injury is still the largest sector of the claims management industry, which as an industry also experienced a 23% drop according to a report from the Claims Management Regulation Unit. In total the personal injury sector dropped in size by 38% since September 2012.
This harsh drop in companies is mostly a result of the ban on referral fees and financial awards that personal injury claim management companies were previously able to offer. It gives a great insight into how these companies were acquiring their clients and how many were unable to continue or adapt without this marketing strategy.
Kevin Roussel of the CMRU was reported to have said that the total number of personal injury CMC’s had reached a plateau, but he also noted “the sector is not about to die” and “it is adapting to the ban and the new situation”.
Are you a personal injury claims company in the UK? We would love to hear your feedback on this. Is it too difficult to recover from being unable to pay referral fees or will the industry carry on as normal with new strategies of marketing?
Let us know your thoughts in the comment section.