Structured settlements will continue to create a steady flow of income for industry firms
Los Angeles, CA (PRWEB) March 13, 2012
Revenue for the Personal Injury Lawyers and Attorneys industry is expected to grow 1.9% annually to $26.7 billion in the five years to 2012. Over this period, the industry has benefitted from an increase in the average age of the US population, which has caused the number of physician visits to rise. According to IBISWorld industry analyst Kevin Culbert, “The aging of the US population contributes to the industry's growth because older individuals are more likely to have slip-and-fall accidents, which can yield personal injury cases.” Furthermore, the subsequent growth in the number of physician's visit results in a greater number of malpractice suits. This factor is expected to contribute to revenue growth in 2012.
Unlike many industries that declined during the recession, the Personal Injury Lawyers and Attorneys industry has a countercyclical nature to it. During the five years to 2012, the number of auto accidents has declined in the United States is expected to fall 1.4% annually to 5.6 million. Similarly, the number of workplace deaths has declined at an annualized rate of 3.2% to 4,801. “In spite of this,” says Culbert, “the recession has made cash-strapped individuals more likely to pursue a personal injury case in the event of an injury.” As such, the decline in potential clients did not create industry poor performance during the recession.
In the five years to 2017, industry revenue is forecast to grow 2.0% annually to $29.5 billion. During that time, industry operators will benefit from an increase of revenue streams generated by structured settlements, which have become more popular during the past five years. Structured settlements are an arrangement in which damages are paid out over a period of time rather than all at once. During the recession, structured settlements became increasingly popular because many defendants were unable to pay damages in one lump sum. As such, industry operators will generate a great proportion of revenue from past settlements in the years going forward. While structured settlements will help boost industry profit margins over the next five years, industry profit growth will be restrained by increasing price competition. An influx of law students, who pursued degrees rather than enter the job market, will lead to higher competition and a boost in the number of small firms. The industry will remain highly fragmented, with the average firm having only three employees. For more information, visit IBISWorld’s Personal Injury Lawyers & Attorneys in the US report in the US industry page.
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IBISWorld industry Report Key Topics
This industry comprises legal practitioners (i.e. lawyers or attorneys) that primarily practice personal injury law.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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