11 May 2016
Mediation Market grows by 5%: The 2016 Mediation Audit
Today CEDR announced the key finding from the 2016 CEDR Mediation Audit - that 10,000 commercial mediations were performed in the last 12 months, an increase of 5% on 2014.
The 2016 audit also shows that in the last 12 months £10.5 billion worth of commercial claims were mediated and that through mediation this year businesses will save £2.8 billion in management time, relationships, productivity and legal fees. As a profession, Mediators and Service Providers in the last year earned £22.6 million - this is an impressive return on investment for the UK economy when compared with the savings for businesses in costs.
The results of the CEDR Audit, which is conducted every two years, were announced at the Civil Mediation Conference at Congress House in London. The Audit received 319 eligible respondents from practising mediators and was conducted alongside a survey of lawyers who use mediation giving a useful client perspective. The Audit's key findings, made possible through collaboration with the Civil Mediation Council made a number of findings for the mediation community:
The shape of the market is undergoing some change – the distinction between direct referrals and service providers is starting to disappear as some mediators move into self-organised groupings for marketing purposes; and the number of stand-alone mediation schemes is diminishing (11% less than 2014) as they become absorbed by providers.
The trend towards appointing mediators directly is continuing with 70% of ad hoc cases (as opposed to cases going through schemes) being handled on this basis. However, Mediation arranged through mediation service providers is also still continuing as 45% of lawyers report using providers to arrange mediations.
Mediators are typically spending an average of 18.6 hours on a mediation, an increase of two hours on 2014.
The overall success rate of mediation remains constant, with an aggregate settlement rate from mediations of around 86%. The proportion of cases that achieve settlement on the day of mediation has fallen from 75% to 67% (which may reflect the increase in cases which are settling shortly after the mediation day rather than on the day itself).
Lawyers are generally pleased with the quality of the mediators that they are working with. 60% of lawyers rated the mediators they worked with as “very good”.
145 mediators were involved in around 85% of all non-scheme commercial cases in the last year. This is an increase from 2014 when a smaller group of 130 mediators dominated the market.
For the first time there are more non-lawyer mediators (57%) than lawyer mediators.
The vast majority of Novice and Intermediate mediators reported personal involvement in no more than 4 mediations a year. Advanced mediators reported more extensive practices but, for most in this group, commercial mediation remains a part-time profession, with only 40% characterising themselves as “full-time” mediators.
Graham Massie, Director of CEDR, who announced the findings at the Civil Mediation Council commented, “There is a consistent message coming through in this data, namely that commercial mediation is firmly established in the dispute resolution landscape. The return on investment for the British economy of a mediation industry that earns £26.5 million but saves business £2.8 billion a year is a statistic that should not be ignored.”
Read the full Mediation Audit at http://www.cedr.com/docslib/The_Seventh_Mediation_Audit_(2016).pdf.
The primary focus of this biennial survey conducted by CEDR is to assess how the market and mediation attitudes have changed over the past two years. This is a survey of the civil and commercial mediation landscape, a field we have very loosely defined as encompassing any and all mediation activity that might reasonably fall within the ambit of the Civil Mediation Council.