TIDMNAH
RNS Number : 7777Q
NAHL Group PLC
02 March 2021
2 March 2021
NAHL Group plc
("NAHL" or the "Group")
Response to Government Update on Personal Injury Market
Reforms
Notice of Results
NAHL (AIM: NAH), a leader in the UK consumer legal services
market, today provides an update on the Government's timetable for
the implementation of reforms to the personal injury sector.
Impact of Ministry of Justice announcement
Last week, the Government re-confirmed its intention to
implement reforms relating to the handling of low-value road
traffic accident ("RTA") claims and published further
implementation details. These reforms were first announced in the
November 2015 Autumn Statement. The changes are not retrospective
and will only apply to RTA accidents occurring on or after 31 May
2021 (the "Implementation Date"). The reforms introduce fixed
tariff damages for RTA whiplash claims and increase the size limit
of claims managed through the RTA small claims track from GBP1,000
to GBP5,000.
As a result, the potential damage awards and associated costs
from claims managed through the RTA small claims track will be
lower. This change is therefore expected to reduce some law firms'
fees from such RTA cases.
According to the Government's impact assessment, the reforms
could affect up to 90% of RTA personal injury claims and the
reductions in damage awards and associated claims costs will amount
to c. GBP1.3bn. The reforms therefore represent a fundamental
change for the RTA personal injury claims market.
The details of the RTA reforms released last week are in line
with the Board's expectations and financial planning assumptions.
The Board was also pleased to note that the legislation did not
make any changes to the small claims track limit for non-RTA
claims, which had previously been anticipated.
The Group has been planning for these changes since 2015. Its
focus on the unaffected non-RTA claims, along with the progress it
has made with its personal injury business transformation strategy,
means it is well positioned for these industry changes and to grow
market share.
NAHL's business transformation strategy
Over the last five years, and in advance of the implementation
of the Government's reforms, the Group has been executing its
business transformation strategy, with the successful launch of
National Accident Law ("NAL") in April 2019. This has included
transitioning from being a claims management company into a modern,
technology-enabled law firm, with a market leading brand that is
able to process its own enquiries.
The Group's strategy to generate increased value in a
post-reform environment principally comprises three elements:
1. Profitably process RTA claims in NAL, including small claims;
2. Process an increasing volume of non-RTA claims in NAL, generating a higher return; and
3. Leverage investments in operations, people and technology to
improve both processing efficiency and customer experience, for all
claim types.
Management have made good progress with each element of this
strategy. In December 2020, key upgrades to the call centre
technology, digital journey and customer triage processes were
successfully implemented. Since January 2021, the majority of new
RTA claims have been processed in NAL and the necessary changes to
enable all RTA claims, including small claims, to be processed in
NAL will be completed ahead of the Implementation Date. Commencing
in the second half of 2021, it is anticipated that an increased
proportion of non-RTA claims will be transferred into NAL.
Notice of results
The Board intends to announce its results for the year ended 31
December 2020 on 25 May 2021.
Tim Aspinall, Chair of NAHL, commented:
"The management team has worked extremely hard over several
years to ensure we are ready to embrace these changes. Since the
initial Government announcement which proposed the reforms back in
November 2015, we have successfully transformed our business by
becoming a leading volume processor of personal injury claims. We
are pleased to have clarity on the detail and timing of the reforms
and the Board is confident that, as we emerge from the pandemic,
our business can deliver sustainable growth in a post-reform
world."
For further information please contact:
NAHL Group plc via FTI Consulting
Tim Aspinall (Chair) Tel: +44 (0) 20
James Saralis (CFO) 3727 1000
Peel Hunt LLP (Nomad & Broker) Tel: +44 (0) 20
Ed Allsopp 7418 8890
Miles Cox
Rishi Shah
FTI Consulting (Financial PR) Tel: +44 (0) 20
Alex Beagley 3727 1000
James Styles
Sam Macpherson
Notes to Editors
NAHL Group plc (AIM: NAH) is a leader in the Consumer Legal
Services ("CLS") market. The Group provides services and products
to individuals and businesses in the CLS market through its two
divisions:
-- Consumer Legal Services provides outsourced marketing
services to law firms through National Accident Helpline and
Homeward Legal; and claims processing and conveyancing services to
individuals through Your Law, Law Together, National Accident Law
and National Conveyancing Partners. In addition, it also provides
property searches through Searches UK.
-- Critical Care provides a range of specialist services in the
catastrophic and serious injury market to both claimants and
defendants through Bush & Co.
More information is available at www.nahlgroupplc.co.uk ,
www.national-accident-helpline.co.uk and www.bushco.co.uk .
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END
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