Whiplash claims from road accidents 'on the increase'

Traffic The average small third-party injury claim was valued at £8,400 by the report

Related Stories

Whiplash claims have continued to rise despite a drop in the number of road accident injuries, a body that represents actuaries has said.

The Institute and Faculty of Actuaries said that a "change in claiming behaviour" had led to the rise.

It blamed the rise partially on claims management companies, saying that the rise in claims was costing the insurance industry an estimated £400m.

However, this had not been handed on in higher premiums for consumers, it said.


The report collated data from across the motor insurance industry over the last year, and also studied police data for road accident injuries.

"All of the updated data that we have collated supports the conclusion that claims management companies have had a marked effect on the number of small injury, whiplash-like claims," said David Brown, chairman of the actuaries' professional body.

"Despite [the cost], the average cost of a UK motor insurance policy is decreasing.

"This is good news for the consumer, but it does raise the question of how sustainable this is for insurers."

The report said that the average value of a small third-party injury claim was £8,400, with many claims centred around the Birmingham area.

Actuaries are employed by the insurance industry to estimate the cost and risk that companies face.


The figures come shortly after the market for car insurance was referred to the Competition Commission for investigation.

The Office of Fair Trading made the referral on the basis that the market was not working well for motorists.

The regulator said it was worried the structure of the market was making costs and premiums unnecessarily high.

It found that insurers of "at-fault" drivers had no control over the amount spent on repairs or replacement vehicles by "not-at-fault" drivers.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

Elsewhere on the BBC

  • Woman standingMysterious miracle

    It's extremely unusual and shouldn't give false hope, but what makes the body beat cancer on its own?


  • A cyborg cockroachClick Watch

    The cyborg cockroach - why has a computer been attached to this insect’s nervous system?

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.