Minster Law has reported a £1.1m profit for 2019 (2018: £1.9m) on turnover of £34.1m (2018: £35.1m) in its annual report and accounts. CEO Shirley Woolham said the result was a “a considerable achievement in light of the exceptional trading conditions created as a result of Covid 19.”
Commenting further on the results, Shirley said the pandemic had impacted new business volumes after official figures from the Compensation Recovery Unit (CRU) showed a 40% drop in motor accident injury claims between April and June 2020 compared to the previous quarter.
She said: “It’s been encouraging to see new business volumes gradually returning to more normal levels over the past few of months, but the market is still volatile. We’ve seen far less volatility in bike related claims, one of our specialisms, where we serve around one-third of the entire market.”
“2020 has, however, been a watershed year in that we have secured a number of new contracts as well as launching our fully operational digital claims operation and customer portal. Digital will be the standard way to manage volume injury claims in the near future.
Our digital claims journey now supports over 80% of our customers with satisfaction scores well in excess of 90%. It has been transformative for customers and our business partners.
“This leaves us well-positioned to take advantage of the changes in the volume RTA claims sector in April 2021, as insurers and brokers look to more innovative partners who can provide efficient, scalable and customer-led claims solutions for a post-reform world.”
Shirley explained that new contracts accounted for £2m of increased distribution costs (2018: £22.4m) during the 2019/20 financial year, with the income benefit being realised over the next few years.
“These new partnerships point to our long-term resilience and the value we can derive from a digital claims servicing proposition. We have leveraged our early investment in digital technology to transform and streamline our operations and how we best serve our customers.”
She also pointed to continuing improvements in business efficiency, after reporting a 5.4% reduction in the ratio of administrative costs to turnover, on top of the 21% administrative cost reduction delivered in the previous year.
“These are the hallmarks of a highly efficient and scalable operating model, critical to firms looking to compete in a post-reforms world. Business re-engineering to this degree is challenging and I’m delighted that we achieved an overall reduction of over £2.2m YOY as a result of transformation program.”
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