The Institute and Faculty of Actuaries reported in October that insurers have seen a 10% reduction in the number of third-party injury claims. Additionally, the average cost of settlement fell by 5% to GBP 4750.
The IFOA concluded the reduction was as a result of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which banned referral fees amongst other things.
It was noted that there remained a correlation between and claims hot-spots such as London, Liverpool and Manchester and the locations of claims management companies, suggesting opportunism and fraud continues to plague the market.
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