The personal injury market has lost another 100 firms in the past year as big players continue to exert their dominance.
Research* by market intelligence company IRN Legal Reports states that in the last five years there has been a 10% reduction in the number of law firms working in PI. The research found a total, 3,412 firms undertaking PI work, a 3.3% decline from 3,528 firms in 2025. The number of firms offering clinical negligence advice has fallen by 4.3% to 1,240.
Of the 18 leading personal injury firms profiled in the IRN report that publish financial results, 16 reported a revenue increase in the past financial year, while 12 registered improved profits.
Turnover increases, in part driven by acquisitions, come in spite of the total number of claims falling for a seventh year in a row, with motor claims registered having more than halved in the last decade.
Analysts say the disparity between the biggest firms and the rest of the market is only set to increase as technology becomes more important in assessing and processing claims.
‘This gap is likely to widen as more investment in digital infrastructure, particularly AI solutions, by the larger players improves operating efficiency and reduces costs,’ the IRN report states. ‘There are some smaller boutique PI firms that can survive as they deal with specialist injuries and negligence and have built a strong reputation in these specific areas.
‘However, despite the overall reduction in the number of firms in the market, there are still too many firms and some SME firms will be squeezed so market exits will continue with more WIP files transferred to others.’
The report states that the likelihood of reform of the litigation funding sector has added to uncertainty and caution in the PI market. Funding will become harder to access for some firms, another factor forcing them to leave the sector.
Despite falling claim numbers, the wealth of the sector should grow in the coming years as compensation for higher value claims increases.
The report adds: ‘Those that have taken the decision to move into higher-value and more complex claims are improving revenue returns although some of these claims can take years to complete. Again, it is the larger firms that can take the greatest risk on these claims plus cope with these delayed payments.’
The likes of Fletchers and Express Solicitors have continued to grow in the past six months through acquisitions, while other firms that previously operated in the market have sold their PI books to concentrate on other areas of law.
The absence of any ongoing reform of the market – in contrast to the past 15 years when the sector has gone through constant change – is one area which creates optimism, but the report states that market growth could still be impacted negatively by any litigation.
*Personal Injury Market Trends Report 2026, IRN Legal
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