In a claim against an untraced driver, we cannot go to court as there is no one to claim against. Once discussions and negotiations are finished, the MIB may issue a formal award.
This is essentially their suggestion you are not entitled to claim or a final financial offer of your claim they are not prepared to increase upon.
If you do not agree to a formal award, there is the possibility of submitting an appeal and an independent arbitrator assesses the matter. Any decision to appeal should be taken very carefully as costs are associated with equalling or not achieving a more favourable outcome than the formal award.