Liverpool is whiplash capital of UK, actuary report reveals

Liverpool has retained its titile as the whiplash capital of the UK after it emerged that its drivers are prone to making claims for personal injury. 

Oldham, Manchester, Bolton, Wigan and Blackburn are next in line as the most likely places where people will make a personal injury claim.

The Institute and Faculty of Actuaries crunched claims data from across the country to show the ratio of third party injury claims as opposed to a third party property damage (TPPD) claim (see table below).

The report also revealed that: 

• Reductions to third party injury claims cost have stopped completely, with a return of inflation in the second half of 2014.  This is in contrast to the significant fall (-20%) in 2013 immediately after LASPO legislation was introduced which reduced the number and average cost of third party injury claims.
• Although the average number of claimants per claim fell by almost 3% for small third party injury claims, average claims cost rose in 2014 by 1.4%.This will disappoint insurers who had seen prices fall by 5.8% in 2013 after the legal reforms kicked in. 
• In the year to June 2015 the number of claims management companies covering personal injury claims decreased by 16% to 934, which appears to be driven by consolidation in the industry. However, CMCs grew sales by 30% which could be linked to increased activity around accident management services. This could adversely impact future inflation in the average cost of TPD claims.