Blog: Whiplash reforms - Last chance for collaboration?

A lot of time has passed since then. We've had the Jackson reforms in the Legal Aid, Sentencing and Punishment of Offenders Act 2012. But we still see more claims than we should, stoked up by intense farming often targeting those most in need and open to manipulation. The damage in terms of premiums that have to be paid to cover this level of claims activity is still there. And yet I have found myself more conciliatory, even calling recently for collaboration between insurers and the claimant lobby as we all sit and wait to see exactly what the new government will make of the promises made in last year's Autumn Statement.

So have I just got used to the other side? Have they ground me down to almost submission? Or am I just tired of the constant bickering?

Well, there's bound to be a bit of the latter, but the reality is that the opportunity for unintended consequences of the Autumn Statement reforms is tremendous, and we do actually have some common concerns that would - I assume - get a better hearing if coming from both sides.

I have been saying for years that the small claims track limit for bodily injury claims is too low, it's not in line with other types of claim, many of which can be more complicated, life-changing and stressful than a small whiplash event, and hasn't even kept pace with inflation.

The problem is, however, if the government just increases the limit - a simple change and probably the least we can expect of the modifications discussed - then claimant solicitors, many of whom actually do have some scruples and moral standing, could be replaced in the process by pure greed-driven claims farmers with potentially no cap on the amount of damages taken away from the injured parties as they look to line their own pockets.

I know solicitors are not without prior guilt in this area. Personally I can never forgive firms for shocking behaviour in dealing with miners' compensation a few years back. But in the same way as I wouldn't damn the entire insurance industry for a few bad apples, I would rather have the more reputable end of the claimant side dealing with claims if help is required on the small track. Solicitors would be free to negotiate good terms in that regard, also continuing to make a good profit if the focus changed to efficiency as opposed to earnings potential.

So I decided to push the collaboration route and initially it seemed to strike a chord. I really thought we would make progress. Sadly, however, this was short-lived, maybe the greed element overtaking the common sense part of the brain with Access to Justice - or maybe that should be Access to Earnings - and others constantly suggesting it's all about insurers increasing their own profits, and how none of us can be trusted.

This reached new levels of comedy recently when they published their own survey which suggested that claims solicitors were more trusted than insurers. I'm not proud of our own reputation, but at least I'm not deluded to think we are at the top of the league. Maybe that's the issue.

If you are not in touch with reality, if you don't know where you actually are, how on earth can you have a credible plan for the future? Post Brexit, despite government representatives stating the Autumn Statement reforms are still official policy, there must be some wavering, lots of other pressures and a Prime Minister who doesn't want to appear to be just favouring big businesses.

If insurers and claimant solicitors were to collaborate on areas of common ground, it might actually save a few of those solicitors' jobs that are the real driving force behind their angst. If they just insist on insurer bashing, however, then even the most patient of us will decide it's not worth the effort. When that happens, if we are even half as connected as the abusive tweets suggest, then it won't be a good day for the claimant lobby.

And I haven't even mentioned the removal of general damages on soft tissue injury - maybe save that for next time. You have been warned!

Read also the point of view of a Personal Injury lawyer

The new Claims Club Summit comes to the Crystal, London on Wednesday 12 October, bringing you innovation, interaction and fresh thinking. Don’t miss:

• Innovation showcases: drones, robotics, automation, 3D printing 
• Cyber TED talks
• Oxford-style whiplash debate with key insurers, regulators and lawyers
• Regulation quick-fire updates: small claims limit, Briggs, CMCs, Insurance Act
• Confirmed FCA speaker: what’s new with the thematic reviews?
• Fishbowl debates: automation, risk prevention, liability, claims efficiency

Booking is open. Insurer, broker and service provider rates can be found at: www.postevents.co.uk/theclaimsevent