BLM has published an analysis of the data captured within the Ministry of Justice RTA portal.
The full report can be accessed here.
Key conclusions from the Portal date include:
CNFs sent – if the present position is maintained, the annualised projection would be 858,623. As the total CNFs for 2014/15 was 864,708, our projection when compared with last year’s figure remains unchanged and suggests either a plateau or marginal reduction ( 0.7%), year on year.
Stage 1 - if the present position on exits is maintained, the annual projection would be 214,509, a decrease year on year of 6.9% – a positive sign. Stage 1 exits as a percentage of CNFs sent remains effectively unchanged, averaging 24.5% of all CNFs sent.
Stage 2 - if the present position on exits is maintained, the annual projection would be 12,743, a decrease year on year of 4.1% – a positive sign. Stage 2 exits as a percentage of CNFs sent remains consistently below 2%.
General Exit Process - YTD total is 150,738, up 11,158 (+ 9.3%) when compared with the same period last year. The annual projection for 2015/16 would be 180,886, which would represent an increase of 11,672 (+ 6.9%). Whilst the reduction in Stage 1 and Stage 2 exits remains a positive sign, a corresponding increase in the number of claims using the General Exit process may warrant enquiry at client level to establish whether claims are exiting the portal via the general exit in place of Stage 1 and Stage 2 exits.
Claims YTD that either settled at Stage 2 or proceeded to Stage 3 together total 223,523 (31.2% of the YTD total), which represents an increase in last year’s averaged like-for-like figure of 192,036 (30.1% of the 2014/15 YTD total).
This increase appears to be due to a rise in the number of Stage 3 packs being prepared, when compared with 2014/15, which represents increased indemnity spend for insurers. The number of Stage 3 packs prepared has averaged 13.2% of the CNFs retained, albeit February reveals an increase in the number of Stage 3 packs as % of CNFs retained to above 14% for the first time since June 2015.
Retained claims unaccounted for by a Stage 2 settlement or a Stage 3 pack total 154,760 YTD (and remains at exactly 21.6% of CNFs sent). Analysis continues to be required at client level to track the progress and lifecycle of claims which appear to stall at Stage 2 before being subsequently abandoned or resurrected.