Compensation and Third Party Claims
The latest annual report from the Institute and Faculty of Actuaries in the UK has thrown up some interesting data relating to the prevalence of accidents giving rise to third party claims in the UK.
According to the report, road traffic accidents giving rise to third party claims for personal injury have been on the decline, and data from 2010 has displayed the sharpest drop in third party claims for the past 5 years. The research suggests that the rise in petrol prices has indirectly contributed to the reduction in claims, because of a corresponding reduction in the time motorists have spent driving.
However, third party injury claim frequencies have increased by 5% in 2011, leading to an 18% increase in the proportion of third party accidents involving bodily injury between 2010 and 2011.
The Institute concludes that the rise has gone hand in hand with greatly increased activity of claims management companies.
Perhaps even more tellingly, the report identifies specific hot spots within the UK displaying increased claims activity, concentrated around the North West and West Midlands, and in particular around Liverpool, Manchester and Birmingham. Interestingly, though perhaps not surprisingly, these hot spots coincide with the areas of greatest concentrations of claims management companies per head of population.
The report suggests that the rise in claims management company activity is driving the rise in claims. Could this rise reflect claims management companies’ final swan song before the government’s introduction of a ban on referral fees?
If the more cynical amongst us might suggest yes, we say that you can cut out the “middle men” altogether. We are only concerned with pursuing genuine claims for injured Claimants.
If you have been injured in an accident that wasn’t your fault, speak to us first.