Claimsense, the fast track personal injury scheme which cuts out claims management companies, is deterring 20% of claimants from entering the system and significantly cutting legal costs.
The scheme was pioneered by law firm Russell Jones & Walker and AXA, and was officially launched in May.
It aimed to slash compensation payment periods for personal injury from an average of two years to three months.
David Fisher, liability claims manager for AXA, said Claimsense was showing some significant successes.
He told Insurance Times that the level of financial compensation handed directly to the "moderately respectable" number of claimants had fallen by up to a third with claimants receiving a bigger proportion of the financial reward.
"Compensation payments are between £850 and £1,250," he said.
"A fair comparable would be, on an average motor whiplash claim, an average of £1,850 on predictable costs against £1,250. If you include liability then that could be £3,000 plus costs."
Fisher refused to admit that the 20% of cases being withdrawn from the system at the point where the claimant is quizzed about medical reports were entirely fraudulent cases.
He said: "We cannot say the 'F word' when talking about these claimants, because we don't have the evidence to support it.
"This is about deterring fraudulent claims. We are watching to see where those who pull out come back into the system via another solicitor."