The latest data from the government’s Compensation Recovery Unit (CRU) has confirmed a “significant drop” in injury claims during 2020.
Following an FOI request, the Association of Consumer Support Organisations (ACSO), found that 172,000 injury claims were registered in Oct–Dec 2020, a drop of almost 50,000 compared to the same period in 2019. Motor injury claims, which make up the most significant proportion of claims on the database, fell to just under 140,000, a 23% year-on-year fall.
Looking at the whole year, the CRU reported a 47% drop in claims across all categories (motor, EL, PL and clinical negligence), from just over 843,000 to just over 445,000. Motor saw a 46% fall, to just under 356,000.
Unsurprisingly, the biggest drop in claims was in Employer Liability, which recorded a 60% fall year-on-year between 2019 and 2020, mainly due to the effect of the pandemic and more people working remotely.
Matthew Maxwell Scott, executive director of ACSO, said: “The picture that emerges from last year is of a hugely significant fall in all personal injury claims. Covid has achieved over the course of 12 months what the government set out to do with its compensation reform programme.”
Maxwell Scott said that “such a significant fall in claims would bring about a large boost to insurer profits”, meaning there was “no reason at all why consumers should not get their promised £35 reduction in motor insurance premiums now”.