Our recent Motor Claims Forum brought together specialists from across the business to discuss the trends, challenges and opportunities currently shaping the motor claims landscape. Discussions ranged from the continued evolution of the Intermediate Track and upcoming reforms in Northern Ireland, through to developments in credit hire, catastrophic injury and automated vehicle technology. 

Intermediate Track: Costs Remain a Key Area of Focus

Nearly three years on from the introduction of the Intermediate Track, costs management remains a significant opportunity for insurers to control indemnity spend. Claimants continue to pursue higher complexity bands and track allocations, often resulting in inflated settlement demands. Experience across both PI and non-PI claims demonstrates that robust scrutiny of costs can deliver substantial savings, reinforcing the need to treat costs negotiations with the same commercial focus as damages. 

If a strategic discussion or tailored training session on the Intermediate Track Reforms would be useful for your team, please get in touch with Paul McCarthy, Head of Costs.  

Credit Hire: Litigation Trends Continue to Evolve

Credit hire remains a fast-moving area including the proposed Pre-Action Protocol, current court allocation trends and the litigation tactics of some of the market’s most active hire organisations. Also highlighted were developments across storage, recovery and loss of use claims, underlining the importance of early intervention and consistent claim strategies to limit exposure. 

To find out more, please contact Max Withington, Credit Hire Partner 

Catastrophic Injury: Complexity Driving Increased Costs 

Market consolidation among claimant firms, alongside ongoing pressures on NHS capacity, continues to influence the catastrophic injury sector. There is a growing prevalence of complex orthopaedic, subtle brain injury and functional neurological disorder claims, together with increasing demand for private rehabilitation and care packages. These trends are contributing to upward pressure on claim values and overall indemnity spend. 

Automated Vehicles: New Opportunities and New Challenges 

The pace of fully automated driving remains slower than many predicted, but developments in advanced driver assistance systems continue to accelerate. Concerns remain around insurers’ ability to access and interpret vehicle data following a collision. As vehicle technology becomes increasingly sophisticated, questions around liability, causation and recovery will become increasingly  important considerations for the market. 

These collective developments highlight a common theme: as claims become increasingly complex, insurers who adopt proactive, data-driven and strategically focused approaches will be best placed to control costs and respond effectively to a constantly evolving litigation environment. 

To discuss Catastrophic Injury or Automated Vehicles further, please get in touch with Emerson Wallwork, Partner. 

Northern Ireland: Preparing for Reform 

The Northern Ireland claims landscape is entering a period of significant change, with increases to court jurisdictions and associated costs arrangements expected to reshape litigation strategy. As claimant firms continue to adapt their approaches, insurers need to be  prepared for the opportunities and challenges these reforms may bring, particularly on managing indemnity spend and challenging unwarranted claims costs. 

To discuss the upcoming changes to the NI landscape, contact Francine Quinn, Associate Partner.  

Scotland: Rising Costs and Key Reform Developments

Scotland faces many of the same challenges as England and Wales in preparing for the wider adoption of automated vehicle technology, with infrastructure development remaining a significant hurdle. Insurers need to be prepared for increasing claims costs, with solicitor fee rates set to rise from October alongside recent increases to counsel, court and enforcement fees. 

Disproportionate legal costs in moderate-value claims remain an issue, reinforcing the need for continued reform around pre-litigation claims, proportionate costs and fundamental dishonesty. Looking ahead, two significant appeal cases concerning credit hire fraud and legal costs could have important implications for insurers operating in the Scottish market. 

For more information on the Scottish landscape and developments, get in touch with Steven Smart, Partner and Head of HF Scotland.