Fewer car crashes but more whiplash claims A report from the Institute & Faculty of Actuaries shows a marked discrepancy between police data for road accident injuries since 2006 and the number of injury claims made to insurers. According to the report, police figures show a 20pc decrease in number of accidents involving injuries since 2006 while there has been a 40pc increase in third party injury (TPI) claims. The increase in claims has cost the motor insurance industry an estimated £400 million, according to the report, with Birmingham accounting for 11 of the 20 worst districts for making TPI claims. The report blamed the rise partially on claims management companies. However, it said these costs had not been handed on in higher premiums for consumers. The average TPI claim now stands at £8,400, which highlights that the majority of claims are for whiplash-like injuries. "All of the updated data that we have collated supports the conclusion that claims management companies have had a marked effect on the number of small injury, whiplash-like, claims," said David Brown, chairman of the actuaries" professional body. This increase in claims has cost the insurance industry what we estimate to be £400m, but despite this the average cost of a motor insurance policy is decreasing. This is good news for the consumer, but it does raise the question of how sustainable this is for insurers. The report was published just weeks after the motor insurance market was referred for investigation to the Competition Commission.