How Whiplash Claims Are Affecting the Insurance Industry

The insurance industry of the developed countries is blaming the injury lawyers for the increase in whiplash claims which are making the industry to pay £2 billion annually.

According to the insurance industry leaders, these kinds of claims are nothing but cash back moneymaking attempts. They directly point their finger to the injury lawyers who help pursue successful claims.

A statistics of The Association of British Insurers showed that they receive around 1200 claims everyday and with an average amount paid out for whiplash claims around £5000. According to their survey 75% of the UK's motor insurance claims are for this same kind of injury as it is known to be very easy to prove the case in favor of the person who holds the insurance policy.

This pattern may affect the insurance premiums in near future as assumed by the insurance industry leaders as they will try to make up their losses due to the rise in claims through high premiums charged to the insurance holders. They assume a rise in premium of 20% over the next year and this rise will be necessary for the industry in order to achieve their underwriting profit level.

The industry is not denying paying for the genuine claims. But they are really bothered about the fraudulent cases where lawyers are appointed just to build up a case based on a fake incident and if the results of the cases go against the insurance company, they have to pay a lump sum amount of money to the policy holder. This type of cash flow is really damaging the insurance industry and these fraud cases are misusing the lawyer's expertise.