'Will claims costs finally decrease?'

When even the people working in emergency services, who are meant to be examples of model behaviour to the public, are all aboard the personal injury compensation gravy train, you know change is needed. Most insurers believe that this change will have to come from the Lord Justice Jackson reforms.

The problem is that nobody knows what will occur. Will claims costs finally decrease? Will insurers be able to offer their customers a fairer deal? Will the man in the street find that the reforms have choked off his access to justice?

The government’s reaction will be worth following.

If premiums do not come down in the wake of the reforms, the government, which is currently battling an agenda to reduce the cost of living, may come under pressure to force insurers to act.

The next couple of years, running up to the likely 2015 general election, are therefore going to be interesting for insurers in terms of the legislative and regulatory landscape.

Talking of legal reforms, one company that hopes to benefit is outsourcing firm Quindell.

Quindell’s strategy to create a one-stop shop for personal injury claims outsourcing appears to be paying off. Fresh from winning a contract with the RAC, the company signed up a “leading UK broker” on Monday and has more acquisitions in the pipeline.

The prospect of deals and the fact that the company has been designed for a post-Laspo world has got equity analysts excited about its prospects. The consensus is that Quindell will make a pre-tax profit of £121.4m in 2013, almost triple the £44m analysts expect it to have made when it reports its 2012 results next month.

The question is whether the company can maintain this momentum and keep winning big-name contracts in such a cut-throat market. This is one company to keep your eye on.