One of the leading hot spots for motor car insurance claims that involve bodily injury to motorists or passengers was recently discovered to be the North West of England, according to the results of a research study.
The research, which was conducted by the Institute and Faculty of Actuaries, has discovered that 2010 figures in the North West saw car insurance companies experiencing bodily injury claims 43 per cent of the time. In comparison, the bodily injury claim rate in North East Scotland stood at a much lower 13 per cent last year.
The research study also indicated that the highest activity and concentration of claims management firms coincided with the claims hot spot areas. The higher number of claims management firms there are operating in a geographical area, the Institute said, the higher likelihood that there were more drivers, passengers, and third parties making claims against insurance providers, which drives up the cost of cover and makes it harder to find discount car insurance quotes.
Scotland was found to have the fewest number of third party insurance claims. In the central belt of Scotland, only one out of five claims involved personal injuries, whereas in the UK, the average was 29 percent.
The Institute also said that Scotland had more strict controls on referral fee payments, with fee payment amounts less than are typically found in the rest of the UK. This means that the number of claims management firms that operate within Scotland is significantly fewer.
One of the authors behind the research report, David Brown, remarked that Welsh and English claims management firms generate income from referral fees – that is, selling on the details of a personal injury case to solicitors. There is presently a complete lack of referral fee legislation in the UK, though the Ministry of Justice is currently looking into ways of completely banning the practice, Mr Brown added.