BLM publishes MOJ portal analysis

26 Jan 2016

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 data include:

  • CNFs sent – if the present position is maintained, the annualised projection is 860,204. As the total CNFs for 2014/15 was 865,474, our projection when compared with last year’s figure suggests, for the first time, a possible plateau or even marginal reduction ( 0.6%), year on year.

  • Stage 1 - if the present position on exits is maintained, the annual projection would be 218,828, a decrease year on year of 5.0% – a positive sign.

  • Stage 1 exits as a percentage of CNF’s sent appears to have settled at an average of 25% of CNFs sent.

  • Stage 2 - if the present position on exits is maintained, the annual projection would be 12,956, a decrease year on year of 2.5% – again, a positive sign. Stage 2 exits as a percentage of CNF’s sent is consistently below 2%.

  • General Exit Process - YTD total is 121,515, up 11,035 (+ 10.0%) when compared with the same period last year. Furthermore, the annual projection for 2015/16 would be 182,273, which would represent an increase of 13,059 (+ 7.7%), notwithstanding a reduction in both Stage 1 and Stage 2 exits.

  • Customers may wish to investigate the reasons, within their own businesses, why the number of claims exiting the portal via the general exit process is on the rise, against a back drop of falling Stage 1 and Stage 2 exits.

  • Claims YTD that either settled at Stage 2 or proceeded to Stage 3 together total 160,702 (28.0% of the YTD total), which represents a fall in last year’s averaged like-for-like figure of 171,330 (30.6% of the 2014/15 YTD total) – a fall of 2.6% year on year.

  • This decrease may be due to a drop in Stage 3 packs being prepared, when compared with 2014/15, representing reduced indemnity spend for insurers. However, the number of Stage 3 packs prepared YTD has been similar for each of the last five months, levelling out at around 13% of the CNFs retained, excluding December 2015.

  • It is too early to say with complete confidence that this is a plateau but it is not unreasonable to recognise that claimant firms will apply their resources where they will deliver greatest commercial benefit – primarily Stage 1 and Stage 2 – and that the Stage 3 teams in claimant firms will be set up to deliver profit on the activity required, not ever increasing volume. Cash flow management in relation to additional disbursements (particularly court fees) will also be a factor.

  • Retained claims unaccounted for by a Stage 2 settlement or a Stage 3 pack total 118,170 YTD (or 20.6%). Analysis is required at client level to track the progress and lifecycle of claims which appear stalled at Stage 2 for an extended period, before being subsequently abandoned or resurrected.

 

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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