The Institute and Faculty of Actuaries has studied data from UK claims and the police and discovered some discrepancies
The results show that there has been a 20% decrease in road traffic accidents, but a 40% increase in third party injury (TPI) claims since 2006. Additionally, accident claims hot spot areas are centred around Birmingham, Manchester and Liverpool, which correspond with the locations of claims management companies. The increase in these small injury whiplash claims amounts to a cost of £400 million for the insurance industry.