In November 2020 Connexus delivered a webinar in partnership with the MGAA that focussed on how insurers and MGAs can be proactive now and prepare for the changes that we are expecting to be in place by summer 2021.
The Civil Liability Act 2018 is expected to come into force between April and July next year, and unfortunately even at this late stage there is a lack of certainty and clarity on how these changes will impact the sector.
Based on what has been proposed to date, an example of the impact we could expect to see is as follows:
A whiplash or soft tissue injury claim lasting three months is currently valued at approximately £2250, after the Act comes into force this will reduce by 90% to £225.
For 6 months and 9 months respectively, this will see a reduction of 85% to £450 and 78% to £765.
With such potentially big changes hanging in the balance, it is essential for insurers and MGAs to be on the front foot. To wait and see what changes come in, when and how, is not a very commercially viable approach.
It has been predicted that 85% of cases will be resolved effectively through accurate triage and early interventional rehabilitation, as this is key to controlling costs.
The Connexus team discussed this in depth at the webinar, to a large audience of industry professionals and insurance press, including the Insurance Times who featured Connexus in this article.
If you were unable to join us on this recent MGAA webinar, you can see it in full here:
The webinar highlighted how businesses such as Connexus Health & Rehabilitation will be integral to the success of any low value claims journey should these changes come in as predicted.