Jackson reforms have not been as effective as expected

The Jackson reforms have not been as successful at cutting claims costs as expected, according to attendees at a Hill Dickinson seminar at Lloyd’s.

Industry players were asked whether the reforms had helped reduce claims spend since they came into force, with 71% saying ‘Yes’.

However, this is down from 86% when attendees at last year’s seminar were asked whether they expected the reforms to cut the cost of claims.

But Tesco group casualty claims manager Angela Doran said it was still too early for the full effects of the reforms to have filtered through.

“The civil justice reforms are like a diet,” she said. “We knew we had to do it, we didn’t want to do it and no one knows what the outcome will be.

“It is still too early [to tell what the full effect of the reforms will be].”

Mr Justice Ramsey, who was tasked with implementing the Jackson reforms, said it could be a couple years before the full picture is visible.

“[The reforms] are generally working well,” he said. “But it will be next year or the year after before we see the full effect of the reforms.”

Hill Dickinson head of costs Paul Edwards said that further reforms such as the independent medical panels for assessing whiplash injuries will help to fully realise the reforms potential.

“[Independent medical panels] should lead to a drop-off in some of the more dubious claims, and allow us to make more informed decisions,” he said.