Size of the Hearing Loss Claims market
1. Noise level for making a hearing loss claim reduced to 80dB in 2006 thereby increasing size of market.
2. Over 10 million people in the UK suffer from hearing loss. Predicted to rise to 14 million.
3. On average it takes 10 years for somebody suffering from hearing loss to make a claim.
4. Market growing as population become more aware of issue.
Quindell and the issue regarding hearing loss revenue
Industry statistic is 80% of hearing loss claims fail. QPP indicate their business will be more successful than the industry average.
Why Quindell believe they will outperform the market
1. QPP reject over 70% of cases before they take on a case = more successful cases.
2. Quindell are supplied claimants by Claims Management Companies. Contracts between Quindell and some CMC’s give QPP right of first refusal. This means Quindell success rate will be higher than competition. Competition will also be progressing claimants Quindell have rejected.
3. CMCs must replace any claimant who has been rejected by Quindell with another at no cost.
4. Some Quindell cases fall outside the Ministry of Justice’s Claims Portal. This means to create £9000 revenue only one claim needs to be progressed rather than four.
Quindell costs and revenue predictions are predicted to be better than the industry standard for the following reasons:
1) High volume production line of cases.
2) High quality of cases.
3) Cost of acquisition for each case lower than their competitors.
The logic and business model seems to be viable. Time will tell if Quindell achieve the success rates required to achieve the revenues predicted.
Note: Cannacord have scrutinized QPP hearing loss claim revenue predictions and uncovered no issues.