In the UK, in April 2024 the Judicial College Guidelines 17th edition (the defacto reference for general damages valuations) announced a 22 percent climb in general damage claim costs over previous editions.14 Many factors impact rising claims settlement costs, such as significant increases in cost of care, including collective actions. This, in turn, heightens underwriter concerns.
“We expect to see that figure continue to rise in line with the Retail Price Index in subsequent years,” says Anthony Little, a claims management director in the United Kingdom. “So probably anywhere between 2.5 and 3.5 percent year-on-year until the next revision is published.”
Until recently, opt-out mass actions have not been a significant feature of the English legal system, which differs with the U.S. However, in 2015 an opt-out regime before the UK Competition Appeal Tribunal was introduced for infringements of competition law. There is an ongoing debate about whether the English legal system should make wider use of opt-out procedures.
Litigation funding, while not as developed as in the U.S., also remains a concern with insurers in the UK, especially if larger class actions…
