MOJ PORTAL ANALYSIS (EL & PL CLAIMS)

Transcription

1 MOJ PORTAL ANALYSIS (EL & PL CLAIMS) BLM Casualty Practice Group (August 2016 December 2016) Sophie Houghton Professional Support Lawyer, BLM T +44 (0) E sophie.houghton@blm.com

2 This report is compiled from the data extracted from the Claims Portal company website in relation to the management information for EL and PL claims. The statistics reveal interesting trends in relation to the number of EL and PL claims which have been submitted via the portal, the number which proceed to stage 2, the number which settle at stage 2 and the number which exit the portal. The Claims Portal EL and PL Management and information can be accessed at The Executive Dashboard/MI for EL and PL claims was last updated by the Claims Portal on the evening of 13 January 2017 providing data for November 2016 and December This analysis will therefore focus on the 5 month reporting period for (August to December 2016) and the corresponding period for (August 2015 to December 2015). It will also focus on the 2014 (January to December), 2015 (January to December) and 2016 (January to December) as there are figures for the full 3 year period. Observations During August to December 2016 the average number of submitted EL portal claims totalled 4,040 compared to a total of 4,268 for the corresponding period in There has therefore been a very slight decrease in numbers totalling 228 and a decrease of 5.34%. The average number of submitted PL portal claims totalled 5,082 for the period August to December 2016 compared to a total of 5,776 for the corresponding period in This shows that there has also been a decrease by 694 in the number of submitted portal claims and an overall decrease of 12.02%. In correlation with the slight decrease in submitted EL and PL portal claims the number of Claim Notification Forms that have dropped out of the Stage 1 process cumulatively for both EL and PL claims has decreased when comparing the period August to December 2016 with August to December There has specifically been a decrease by 13.16% in the number of PL claims exiting at stage 1 and a decrease by 7.9% in the number of EL claims exiting at stage 1 when comparing August to December 2016 with August to December

3 However, there has been a modest increase by 8.18% in the number of PL claims which have left stage 2 of the portal during the period August to December 2016 when compared with August to December There has also been a similar increase by 8.02%, in the number of EL claims which have left stage 2 of the portal during the period August to December 2016 compared with August to December The above statistics indicate that more claims are remaining in the portal after stage 1 but there is an increase in claims exiting the portal at stage 2. However, the increase for the period August to December 2016 when compared to the same period in 2015 is less than 10% but nonetheless this indicates that more claims are potentially exiting the portal due to human error, such as a failure to pay stage 1 costs or the defendant failing to respond to the stage 2 settlement pack within the relevant period of time under the protocol. It remains the case that claims continue to exit the portal due to late payment of requested interim payments and a failure to pay stage 1 and stage 2 costs. Also rehabilitation referrals can lead to claims exiting the portal if the defendant does not provide a response to the triage report within 15 business days and it remains the case that claimants elect to exit the portal when it may be unreasonable for them to do so. Further, there has been a surge of claims exiting the portal due to the claim wrongly being issued under part 7 for limitation purposes when it should have been issued under part 8. It is also interesting to note that proportionality more EL claims than PL claims exited the portal at stage 2 for the periods August to December 2015 and August to December 2016, although significantly less EL claims exited the portal at stage 1. It is not certain why there are higher exits for EL claims at stage 2 but in EL claims there may be more challenges in respect of causation where the content of the medical report does not tally with the employers accident report and/or investigations in respect of the happenings of the accident etc. The increased number of exits from stage 2 of the portal corresponds with a 12.83% decrease in the agreed number of EL settlements and a 10.55% decrease in the agreed number of PL settlements at stage 2 when comparing August to December 2016 with August to December This corresponds with there being a higher number of court proceedings packs being created for both EL and PL claims during the period August to December 2016 when compared to the same period in In respect of EL and PL claims it is interesting to note that the same number of court packs were created, being 308 for both EL and PL claims, during the period August to December

4 It is not surprising that the number of court packs being created has increased because the statistics show that a lower number of settlements are being reached at stage 2. This may be due to the fact that claimants are seeking higher awards for general and special damages and both claimants and defendants frequently display more aggressive negotiation behaviours. Also lower settlements during the stage 2 process could be due to there being an increasing number of inactive claims at stage 2 and this will be interesting to monitor over the next 6 months. In relation to EL claims the average General Damages offered during the period between August to December 2016 compared to August to December 2015 increased by 9.96%. Whilst the average General Damages offered for PL claims during the period between August to December 2016 when compared to August to December 2015 increased by 8.94%. The statistics indicate that the amount of General Damages offered is continuing to increase on a relatively steady basis for PL claims and on a more modest basis for EL claims. However, this appears to be an area which will continue to increase due to inflation and will be something to monitor in light of the proposed reforms to raise the small claims limit to 5,000. It may therefore be the case that only claims valued above 5,000 are pursued via the portal, unless litigants in person have access to the portal, which will impact on the number of EL and PL claims that are submitted in the portal and could drastically increase the average amount of General Damages offered. It is interesting to note that a lower number of both EL and PL claims are leaving the portal using the exit function. In respect of EL claims the number of claims that left the portal totalled 5,108 in the period August to December 2016 in comparison to 5,607 for the same period in Whilst for PL claims the number of claims that left the portal totalled 5,247in the period August to December 2016 in comparison to 6,228 for the same period in It is not surprising that a higher number of claims PL claims have exited the portal for one reason or another, on the basis that 10.11% more PL claims were submitted during the period August 2015to December 2016 compared to EL claims. The data from the Claims Portal company website shows 3,011 PL claims exited the portal due to the CNF being incomplete, whilst only 220 exited the portal due to the value being below 1,000. In comparison the data from the Claims Portal company website for EL claims shows that 778 exited the portal due to the CNF being incomplete, whilst 185 exited the portal due to the value of the claim being below 1,000. It is also interesting to note that only a very small percentage of claims exit the process due to the defendant failing to acknowledge the CNF in time. In comparison, a much higher number of PL and EL claims continue to exit the process for the value of the claim exceeding the upper limit, being 25,000. 3

5 It remains the case that a high number of claims continue to exit the process due to further investigation being required. In respect of PL claims, 5.69% exited the portal for this reason whilst in respect of EL claims 7.50% exited for this reason. Also an even higher amount of EL and PL claims left the process using the exit function for other reasons. The portal statistics reveal that 857 EL claims left the portal using the other exit process in December 2016, which was 26.69% of the total number of EL claims submitted that month and was over six times higher than the number of claims that exited at stage 2. In comparison, 865 PL claims left the portal in December 2016 using the other exit process, which was 21.92% of the total number of PL claims that were submitted that month and again was over six times higher than the number of claims that exited at stage 2. However, for both EL and PL claims it is interesting to note that the highest number of exits in December 2016 was at stage 1 of the portal in respect of either a liability decision not being provided in time, liability being denied or contributory negligence being alleged. It can be seen that the specific statistics for December 2016 tally with the overall averages for the period August to December 2016 because there were more claims that exited at stage 1 in comparison with stage 2. Also there is still a higher number of CNFs that leave the portal using the exit process for other reasons, to include further investigation being required and there being a failure on the defendant insurer to acknowledge the CNF on time. In terms of carrying out a wider comparison, the statistics reveal that the number of submitted EL and PL claims has reduced when comparing 2014 to 2015 with 2015 to 2016 and the current period that runs from August 2016 to July The statistics show that there was a decrease by 6.86% in the number of EL claims submitted during August 2014 to July 2015 when compared to August 2015 to July Further, the current statistics for August 2016 to December 2016 indicate that there will continue to be a decrease in the number of submitted EL claims but this decrease will be modest and the number of submitted claims will remain relatively consistent. In respect of PL claims, the statistics show that there was a decrease of 12.40% in the number of claims that were submitted via the portal when comparing August 2014 to July 2015 with August 2015 to July Again, it appears to be the case that by July 2017 there will have been a further slight reduction in the number of PL claims submitted during August 2016 to July 2017 when assessing the current statistics to date. However, it appears likely that there will only be a very slight reduction in the number of claims submitted because the current projection for the volume of both EL and PL claims shows that numbers are remaining consistent. 4

6 It is also interesting to note that the most recently published Ministry of Justice (MOJ) statistics for July 2016 to September 2016 (Q3), reveal that the number of issued personal injury claims along with the number of filed defences remain consistent. Also the MOJ statistics reveal that approximately 95% of unspecified money claims are for personal injury, which shows that the numbers of claims for personal injury remain at a similar level and the numbers of issued claims are remaining consistent with no noticeable depreciation. 5

7 Comparison between portal statistics for August to December 2015 and August to December August 2016 to December 2016 August 2015 to December

8 Claim volumes The statistics in respect of Portal usage for EL and PL claims Volumes reported by the portal company Calendar Year Total CNFs sent Total Stage 1 exits Total Stage 2 exits Total general exit process Total all forms of exit Total exits as a % of CNFs sent Stage 3 packs prepared Stage 2 settlements Total Stage 2 settlements & Stage 3 resolved Total Stage 2 and Stage 3 settlements as % of CNFs * ,147 6, ,752 10, % % 9, ,537 63, ,283 86, % 293 8,726 9, % 25, ,983 70,214 1,586 28, , % ,736 17, % 9, ,435 62,619 1,906 26,596 91, % 1,272 15,573 16, % 5,469 Unaccounted for CNFs less total exits/settlements and Stage 3 resolved * 5 months of data extrapolated 7

9 Annual trend analysis between and Average per month 2015 Average per month Change Change % Trend Trend 2014 to 2015 as % of CNF s sent Outcome for insurers CNFs sent/received 10,129 10, % Up Increase Negative Stage 1 exits 5, % Up Increase Negative Stage 2 exits % Up Increase Negative Other exit process 1, % Up Increase Negative Stage 2 settlements % Up Increase Positive Stage 3 packs % Up Increase Positive Unresolved 2, % Down Decrease Positive Average Damages % Up Increase Negative 2015 Average per month 2016 Average per month Change Change % Trend Trend 2015 to 2016 as % of CNF s sent Outcome for insurers CNFs sent/received 10,582 9,453-1, % Down Decrease Positive Stage 1 exits 5,851 5, Down Decrease Positive Stage 2 exits % Up Increase Negative Other exit process 2,372 2, % Down Decrease Positive Stage 2 settlements 1,395 1, % Down Decrease Negative Stage 3 packs % Up Increase Negative Unresolved % Down Decrease Positive Average Damages 3,575 3, % Up Increase Negative 8

10 Annual trend analysis between 2014, 2015 and , , Average per month 8, , , ,

11 1. The statistics from the Portal company show the following key points:- A slight decrease in the number of CNFs sent/received when comparing the average for August 2016 to December 2016 with the period August 2015 to December There has also been a decrease in the number of CNFs sent/received when comparing the monthly average for 2016 with the monthly average for 2015 and However, the decrease has not been significant and the statistics show that the number of EL and PL claims is remaining consistent. A decrease in the number of stage 1 exits when comparing the monthly average for August 2016 to December 2016 with the monthly average for 2015 and There is also a decrease when comparing the monthly average for August to December 2016 with August to December A 43.24% increase in the number of stage 3 packs when comparing the average for 2016 with the monthly average for Also there has been an increase in the number of stage 3 packs when comparing the monthly average for 2016 with the monthly average for A 39.84% decrease in the number of unresolved claims when comparing the monthly average for 2016 with the monthly average for 2015, which is a positive indication that more claims are being resolved in the portal. 2. The statistics for 2014, 2015 and 2016 reveal that over 50% of EL and PL claims exit the portal at Stage 1, whilst a much lower number of claims exit the portal at stage 2. In 2014 only 0.76% of claims exited the portal at stage 2 compared to 1.25% of claims exiting at stage 2 in 2015 and 1.68% of claims exiting at stage 2 in These figures show that the number of exits at stage 1 and stage 2 remain similar and are unlikely to change under the current regime. 3. The average monthly statistics reveal that the amount of General Damages offered is gradually increasing each year with an increase of 11.13% when comparing the monthly average for 2015 with the monthly average for Specifically for the period August to December 2016 there has been a 9.96% increase in the average amount of General Damages offered for EL claims when comparing with the same period in Also there has been an increase in the average amount of General Damages offered for PL claims by 8.94% when comparing August to December with the monthly average for the same period in

12 It will be interesting to see whether these figures remain consistent and the impact that the JSB 14 th edition, which is due this year, will have on the amount of General Damages offered. 4. The number of EL and PL claims submitted in 2016 totalled 113,436 in comparison with 126,984 EL and PL claims being submitted in The difference in the number of claims submitted is not significant and the statistics indicate that the level of claims will remain at a similar level in The total number of CNFs submitted via the portal from 31 July 2013 to 31 December 2016 for EL claims is 158,779 whilst the total number of CNFs submitted via the portal from 31 July 2013 to 31 December 2016 for PL claims is 223,247. Sophie is the Professional Support Lawyer for Casualty claims. She specialises in employer s liability and public liability cases having worked as an in-house Solicitor at a leading insurance firm. Sophie Houghton Professional Support Lawyer T: +44 (0) E: sophie.houghton@blmlaw.com 11