@MarkEvans You're quite correct that implementation of something...

@MarkEvans

You're quite correct that implementation of something like the ACC is a long term risk and perhaps an unlikely one and in addition there are unlikely to be reforms such as proposed in the UK. That said these examples are extreme cases used to highlight the relevance of regulatory risk to this business. There is certainly medium term risk of more moderate changes that can impact the bottom line.

An example of this is the workcover changes that QLD ex-premier Campbell Newman introduced back in 2013 (I believe these changes have since been repealed.)

http://aworkcovervictimsdiary.com/2...anges-queensland-workers-compensation-scheme/
"Lawyers are furious about proposed changes to the Queensland state’s workers compensation scheme have vowed to cruel the re-election chances of Government MPs. Shine Lawyers, of the state’s highest profile personal injury law firms has predicted losing millions of dollars in profit of changes to Queensland workers’ compensation laws, due to be passed in Parliament on Thursday"
[ ... ]
"The amendments are set to almost halve the profit of legal firm Shine Lawyers. The Australian Stock Exchange has been informed Shine Corporate Limited is likely to see net profit after tax reduce by $2 million to $2.5 million. Shine managing director Simon Morrison says the company has adjusted to similar reforms in other states and is well placed to deal with the changes in Queensland by reducing its reliance on personal injury compensation. Of the company’s 40 offices, 27 are in Queensland."

Of course since 2013 Shine has wisely expanded into different states and non-PI areas of law so in future state government changes to PI reg are likely to have a more contained effect on the business.

I'm not suggesting anyone should panic or that any negative regulation is on the immediate horizon. I am simply saying that this is something Shine shareholders should keep an eye on and take seriously. Effectively there is a constant battle between lobby groups acting on behalf of insurance companies versus those acting on behalf of lawyers. There's a vested interest for each of these lobby groups to swing the scope of regulation in their favor, and this battle will be ongoing for as long as there is tort law and insurance.