The introduction of the Compensation Bill 2006 and the authorisation of claims management companies (CMC), will lead to a shrinking in the number of personal injury companies in operation, claims a new report from Datamonitor.
In its report, UK Personal Injury Litigation 2005, Datamonitor estimates, following regulation, the number of companies involved in the sector will fall from approximately 400 now, to between 100 and 150. Datamonitor defines the accident intermediaries who would be hit hardest by the legislation as companies which refer claimants to solicitors, and may also arrange insurance, funding for the insurance premium and medical or legal services. Andrew Birkett, financial services analyst at Datamonitor, and author of the report, says: “Many intermediaries are relatively casually run, transi...
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