What Do We Know So Far?

1. The Ministry of Justice Proposals for the Reform of the Personal Injury Compensation System – The Insurers Perspective

2. What Do We Know So Far? • “There are known unknowns. These are things we know. There are known unknowns. That is to say, there are things that we know we don’t know. But there are also unknown unknowns. These are things we don’t know we don’t know” • Donald Rumsfeld – former US Defense Secretary

3. Insurers ‘Wish List’ • ‘Costs proportionality’. • Increase in Fast Track limit. • Provision of better information in the letter of claim with which to investigate liability. • Dispute cases’ to remain within the process or have the ability to return to the process if liability is subsequently admitted. • Contributory Negligence cases to remain within the process. • Extended investigation time limits for PL investigations or where claim relates to an incident say 6+ months ago. . • Rehabilitation to be built into the process. • Mediation process for small value disputes. • Common tool for assessment of damages.

4. Insurers Issues • Too many of us are operating from ‘backlog’ situations. • Investigation period of 15/30 days appears to include period during which the Policyholder / Broker will notify the Insurer. • Provision of medical evidence entirely handed over to Claimant Solicitor therefore less say over choice of expert. • Process sets no timescale within which Solicitor should arrange the medical therefore less impetus to move to settlement. • Despite best endeavours some cases will not be capable of investigation within the timescale, response to this is uncertain. • Will there be a ‘spike’ of new claims pre-implementation? • Will there be more speculative cases?

5. Steps To Be Taken • Mindset – this is an opportunity not a burden therefore do not overlook it! • Do not put it on the ‘back burner’ because of the slippage in the implementation of the process. • Review your current processes for compliance with envisaged timescales for investigation. • Set KPI’s, Targets & Objectives which are aimed at progression towards the timescales. • Liaise with Underwriters & Distributors. Must get policy wording right on notification requirements & ensure that all Sales & Intermediaries are receiving a consistent message as to what we require. • Consider your notification strategy – encourage pre-claim notifications or focus on formal claim only cases?

6. Steps To Be Taken Continued • Slick notification process including a triage process – identify obvious ‘payers’ and desktop investigate. • Technology for transfer of instructions & slick allocation process to avoid downtime. • Prioritise investigations. • ‘Soft skills’ training to ensure retain balance between ‘pragmatism’ & customer perception. • Proportionate reporting according to the value & issues. • Who should communicate the liability decision? • Ensure robust criteria to spot potential Fraud or Large Loss Indicators i.e. do not get carried away with impetus to finalise within time limit. • Ensure your audit processes support the right behaviours.

7. And Always Remember… “Lawyers are like rhinoceroses: thick skinned, short sighted and always ready to charge” David Mellor