Rise in injury claims despite fall in number of car accidents
Posted by Jodie Crowther on Thursday, 5 Jul 2012, 17:29 in Accidents and Vehicle Safety , Automotive Industry
The number of personal injury claims linked to car accidents soared by almost a fifth last year, according to new figures. Data from the Institute and Faculty of Actuaries revealed an 18 per cent year-on-year rise in the proportion of accidents involving bodily injury. The extra payouts are estimated to have cost the insurance industry £400m, and it is drivers who are likely to bear the brunt. The increase comes despite a fall in the total number of actual accidents. The report's authors concluded that they believe the rise is linked to "unprecedented activity by claims management companies". They also noted a "clear correlation" between claim hotspots and the location of offices belonging to claims management firms. The institute's chairman, David Brown, said: "The increase in costs to insurers because of the rise in bodily injury claims is likely to result in a rise in motor insurance premiums for drivers. "In 2010, the worst areas of the UK overtook the worst areas of the US in terms of the proportion of accidents involving bodily injury. It is disappointing to see this trend not only continue, but worsen in all regions with the exception of Scotland." However, Mr Brown added that the spike in claims could prove to be a last hurrah for claims management companies, thanks to new legislation which is expected to change the way such firms operate.
