As our founder and CEO Eddie Hooker reflected, 2024 was a “year of challenges but also significant achievements and innovation.” We saw new treatments in the regenerative aesthetics category come to the fore, as well as aesthetic clinics expanding into areas like menopause, wellness and longevity. At the same time, the aesthetics sector faced challenges, including economic pressures as a result of the cost of living crisis and frustrations around the Government’s response to the licensing consultation not coming through before the close of the year.
The industry has also been in the spotlight for negative reasons, such as the complications arising from Brazilian Butt Lifts (BBLs), including the first UK reported fatality.
With all this going on, it naturally follows that the world of aesthetics insurance has seen new challenges and trends emerge, too, and this includes a rise in reportable claims. While we can never completely prevent a claim, understanding the key risks and implementing proactive measures is essential. At Hamilton Fraser, we emphasise not just claims management but also proactive support to help clients minimise unnecessary claim records on their policies.
Here’s what’s happening behind the scenes, our top tips, and what makes our service stand out.
There are two broad categories of claims in aesthetics: those related to treatments/patient complaints and business related claims related to causes such as a fire, flood, denial of access, or a pandemic.
In terms of treatment complaints, you have dissatisfactions and reportable claims.
The table below is a helpful tool in establishing the type of complaint you're facing:
Whatever the nature of the complaint, we will be happy to discuss potential scenarios with you and advise on the best course of action if you may need to make a claim.
In this article, we are focussing on treatment/patient related complaints that have led to reportable claims.
“If a patient has said they are dissatisfied with the results of treatment, but there are no allegations of bodily injury, negligence or financial loss, and they have not approached a solicitor, then this would not trigger the formal claims process”,
- explains Senior Client Services Technician, Emma Bracchi.
“A formal claim is considered to be an allegation of bodily injury, negligence or financial loss, which can be received directly from your patient or via a third party solicitor.”
In 2024, reportable claims increased, with legal costs comprising the largest portion. This highlights the need for early intervention to manage issues before they escalate.
As Priya Chander, our experienced cosmetics claims handler, explains, “A reflection of claims in 2024 has seen a rise in reportable claims. We have seen more and more complaints about the results of treatments, but what makes these reportable is that patients are mentioning lifelong impacts and injuries as a result.
“While patients have not been paid out, the costs from claims have been mostly in the legal costs of defending them. I also believe that the rise in complaints is mostly due to the cost of living crisis we are experiencing currently and also due to the expectations of results that AI might raise with patients. This, in turn, has resulted in more complaints, but the costings have remained fairly balanced throughout 2024.”
Claims payouts in 2024 demonstrate the impact of legal costs, which often far exceed compensation paid directly to patients.
Below are examples of the largest cases *figures have been rounded up:
Biggest claim payout – £1,593,000
Claimants’ legal costs made up 25% of the total payout.
Second largest reserve – £547,000
Smaller claims breakdowns:
From January 2020 to November 2024, Hamilton Fraser has managed 1,096 medical malpractice claims. The top three claim types were:
Together, these three categories account for nearly half of all claims in this period. Notably, hair transplant claims (categorised under general treatments) are emerging as a significant area of concern due to the high associated legal costs:
Hair transplant examples:
This demonstrates that claimant’s costs are often the largest component of payouts. Understanding this is crucial in helping grasp the broader financial implications of a claim.
One critical takeaway from our 2024 claims data is for practitioners to notify us of potential claims or complaints as soon as they arise. Timely notification means that issues can be managed effectively, reducing the risk of escalating costs or legal action.
By addressing issues early, claims costs can often be reduced, and clients may be supported without the need for formal reporting.
At Hamilton Fraser, we are proud to offer a standout solution for cosmetic practitioners: Emma and Priya, our dedicated team members, are authorised to manage dissatisfaction cases where complaints focus strictly on results (not injury or legal threats). This means:
This level of service is unique to Hamilton Fraser and provides clients with an invaluable resource for managing patient expectations and resolving minor complaints.
In September and October 2024, our claims team attended advanced training courses at Dr Bob Khanna’s Training Institute with Hiscox, our insurance partners.
Priya reflects: “This training enhanced our understanding of the botulinum toxin and dermal filler treatments to assist us in handling these types of claims, as these tend to be common! This was incredibly insightful and enabled all of us to understand techniques and terminology better when reviewing these types of claims to help our customers. It was amazing to see some results in real time with the live models and experience what the delegates were taught. We also had the opportunity to talk to the delegates about all things insurance and reiterate the importance of notifying insurers of any complaints/adverse reactions they may have.”
Insurance is an essential investment for any aesthetic professional and, like any investment, it’s important to look at quality, substance and a high level of support services rather than just price alone when choosing which cover is best for you.
“When starting your aesthetics journey, choosing your insurance partner should be as important a consideration as your product or your training provider. It won’t necessarily define your business but one day it could save your business. At Hamilton Fraser, we offer far more than just insurance. We constantly review the market and talk to our customers, to make sure that the service and cover we provide reflect our ever-changing environment and evolving customer needs. Our expert inhouse claims team is on hand to provide tailored support based on your individual requirements. Hamilton Fraser has seen plenty of change within the aesthetics sector since starting out in 1996 with our first customers, mainly nurses who were practising in a new health and beauty sector, aesthetic medicine. As we move into 2025, we’re looking forward to continuing to shape the future of this exciting and growing field, supporting the industry and improving standards for consumers in partnership with our customers, many of whom have been with us since the beginning.”
- Eddie Hooker, founder and CEO of Hamilton Fraser
While claims cannot always be avoided, Hamilton Fraser’s focus remains on supporting practitioners every step of the way. Our dedicated team, unique approach to managing dissatisfaction, and commitment to continuous education mean our clients are always in the best hands. Remember: early notification is key to preventing claims from spiralling out of control.
For a deeper dive into how we handle claims and tips for practitioners, check out our article on complaints and claims handling and stay tuned for our upcoming podcast with Emma, where we’ll explore more behind the scenes insights and advice.
If you are a Hamilton Fraser customer and have a claim raised against you, or if you would like to find out more information about becoming a customer, please get in touch with the team.
%20(30).png)
.png)
.png)