An impressive one in four RTAs now results in a bodily injury compensation claim according to the cumbersomely named Institute and Faculty of Actuaries. This represents a very healthy improvement from the pitiful ratios of the mid-noughties, when barely one in ten accidents triggered a claim for compensation.
The IFAs this week unveiled the findings of their working party on motor insurance claims - during which, between eating cakes and jelly, pinning tails on donkeys etc, they picked their way meticulously through vast swathes of insurers’ claims data.
The disappointing news, however, is that the upward trend in accidents per policy has begun to slow, suggesting a real danger that the past year’s 20% rise in the number of UK claims management companies may not be sustainable.
There are also concerns that the MoJ’s fast-track low-value claims-handling process may be limiting opportunities for the legal profession. The IFAWPOMIC report found that the cost of settling injury claims has not risen at all in over a year and that minor claims are being settled with worrying rapidity.
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