Clinical Negligence Market Worth Around £1 billion
28 Oct 2020
Law firms earn around £1 billion from clinical negligence cases
In 2019/20, IRN estimate law firms earned revenue of around £1 billion from CN cases. However, once the cost of running cases where no damages were awarded on a no win, no fee bases are factored in, net revenue to law firms drops to below £800 million.
Across the four nations of the UK, IRN Research estimate that over £2 billion was paid out in CN cases in 2019/20, covering damages, payment of claimant legal costs and payment of defence costs. This is little changed on the amount spent in 2018/19. New CN case numbers have declined sharply in 2020 compared with previous years, however, this reflects the impact of COVID-19 and case numbers are likely to recover if the impacts of the pandemic end.
Even with a slowdown in annual expenditure, there is likely to be continued high levels of spending on CN cases in the future. Collectively, the UK indemnity organisations hold provisions of over £90 billion to meet future CN claims, so sustained and substantial case numbers and payments are likely in the years to come.
Clinical Negligence Report
IRN Research’s Clinical Negligence 2020 Market Report provides a review of the Clinical Negligence legal market, looking at the legislative background, market size and trends, the key players and future market developments.