First reduction in claims for 10 years, says Institute and Faculty of Actuaries

Legal reforms cut the number of third-party motor injury claims by 10% in 2013, according to a new report by the Institute and Faculty of Actuaries.

The institute said this was the first reduction of the claims in 10 years.

It added that the cost of injury claims per claimant had also fallen to £4,750 from £5,000. In addition, the number of claimants per claim fell to 1.5% from 1.6%.

David Brown, one of the report’s authors, said: “Legal changes in 2013, most significantly the Legal Aid, Sentencing and Punishment Offenders Acts – known as LASPO – appear to have had a significant impact on motor insurance injury claims.

“However, we remain uncertain as to what the final impact of these changes will be, as well as that of other legal changes, such as the upcoming whiplash reforms.

“What is clear is that the motor insurance industry anticipated the impact of legal changes and has already passed on the reduction in costs to consumers. In the year to the end of March 2014 there was a 19% reduction in quoted motor insurance premiums; which is great news for consumers.”

The Confused.com/Towers Watson Car Insurance Index said that there had been a 19% reduction in quoted motor premiums in the year to the end of March 2014.

 

Worst and best locations for third party injury claims

Worst 10

RankLocationThird party injury frequency
1East London2.39%
2North West London2.31%
3Southall2.31%
4Ilford2.26%
5Harrow2.22%
6North London2.20%
7Liverpool2.03%
8Manchester2.00%
9Oldham1.98%
10South East London1.91%

Best 10

RankLocationThird party injury frequency
1Inverness0.48%
2Aberdeen0.53%
3Dundee0.58%
4Kilmarnock0.66%
5Exeter0.66%
6Dorchester0.67%
7Kirkcaldy0.67%
8Falkirk and Stirling0.68%
9Taunton0.70%
10Truro0.72%

Source: Institute and faculty of Actuaries

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