Personal injury Work - there is another world out there

A leading player in the world of Personal Injury finance has predicted that within a few years there be only be about a dozen firms specialising in this work.  The rest will, presumably, ride into the sunset or retrain in corporate finance...

https://www.lawgazette.co.uk/news/pi-market-will-shrink-to-just-a-dozen-firms-says-legal-investor/5065095.article?utm_source=dispatch&utm_medium=email&utm_campaign=%20GAZ141016

This is the prediction of Steve Dinn of Doorway Capital which has recently hit the news with their investment in Simpson Millar. I do see his point. The introduction of the so called ‘reforms' to the PI sector in 2019 will present a major challenge to many. I would certainly agree that the market will look very different in a few years time. There will be a reduction in the number of major providers many of whom have found themselves in difficulties. But there is more to the world of PI then these monoliths. It would easy to believe that these firms are the only providers of PI work.

Back in December I predicted that there was likely to be a re-grouping in the sector driven by a growth in the number of smaller, niche providers –

 http://thestevecornforthblog.blogspot.co.uk/2017/12/personal-injury-2018-some-thoughts-and.html

I have worked with a number of firms – more than 12 (!),  which are realistic about the challenges ahead but have no intention of leaving the marketplace. Big might be beautiful but it also expensive and often cumbersome. I predicted in December that we will see smaller, trimmed down units with lower overheads which will adapt to the changes and grow. This will happen alongside the continuing development of social Media Marketing and remote working. We might even see a return to the old idea  local solicitors.

There will be those who do not adapt and could well fall by the way. But to talk of wholesale failures and exits is unrealistic. There is a whole world of small, tightly managed firms which will continue, albeit with tighter belts and lower expectations!

I have no doubt that companies such as Doorway are very much the experts in the high end world of legal services. But there is another world out there. With a lot of planning and willingness to change, these smaller providers will still be around for years to come.

stevecornforth.com