Turnover of claims management companies has shot up over the last year, according to the sector’s regulator.
The Ministry of Justice claims management regulator’s annual report shows a “significant increase in declared turnover” by claims companies in the year ending November 30th 2010.
The total turnover of claims management companies was up from £370 m to £581 m, according to the report.
The biggest chunk of the figure is accounted for by a more than 50% increase in reported turnover in personal injury claims which were up to £377 m, compared to £247.5m in the previous year.
Claims in the financial products and services sector were also up from £189m compared to £104m.
But the report shows that the number of applications to set up authorised claims management companies was down to 19 per week in 2010/11 compared to 25 in the previous year.
According to the report, the biggest concentration of authorised management companies is in the north west.
In his forward to report, the MoJ’s head of claims management regulation Kevin Rousell says that the department is focusing on “high risk” claims management companies, which are taking fees upfront from customers to fight payment protection insurance claims rather than once it is settled on a ‘no win, no fee’ basis.
No comments yet