Serving you better:
Insurance profession braces for whiplash reforms
Press release
Publication date:
16 December 2019
Last updated:
25 February 2025
Both underwriters and claims professionals are bracing for the Whiplash Reforms that are set to be introduced in April 2020.
The Whiplash Reforms are a package of measures introduced by the government to reform the way low-value personal injury claims arising from road traffic accidents are handled.
According to the Ministry of Justice the reforms will “reduce insurance costs for ordinary motorists by tackling the continuing high number and cost of whiplash claims.”
David Williams, interim chairman of the Society of Underwriting Professionals, said underwriters need to make sure they are on top of the changes plus work to report the savings these deliver for consumers.
Mr Williams said: “With motor (insurance) pricing being a complex area, separating out the impact of just the legal changes might prove much more difficult than I think the government is expecting.”
The reforms will reduce the financial compensation for injury by setting a fixed amount payable for injuries lasting less than two years and reduce the amount an insurer must pay in costs by increasing the small claims track limit from £1,000 to £5,000 for road traffic accident related claims.
For employer’s liability and public liability the limit is lifted to £2,000.
Sue McCall, chairman of the Society of Claims Professionals, said: “The headline result of this increase is that those claims valued below the new limits will no longer result in costs recovery.
“The expectation is that there will be a far greater number of litigants in person. This will bring with it the need for more time spent per case in explanation and communication.”
Ms McCall, who as well as being chairman of the Society of Claims Professionals is head of claims at Aspen Risk Management, said the profession should note that a portal for whiplash claims is being developed and expected to be in place by April 2020.
She said: “We may see a surge in reported motor claims ahead of the reforms, as we did prior to the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act 2012.”
ENDS
Contacts
Helen Moore, Communications and Engagement Manager
T: +44(0)20 7397 1121
M: +44(0)7464 521 213
Reace Novello, Public Relations Executive, Personal Finance Society
T: +44(0)20 7397 1113
M: +44(0)78 6732 4170
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