The UK’s personal injury claims have reached an unprecedented low, with the first quarter of 2025 recording only 106,113 claims—a 16% decrease from the same period in 2024 and nearly a 50% drop compared to pre-pandemic levels in 2019, according to Claims Mag.
Motor injury claims, the most significant subset, fell to 74,211 in Q1 2025, marking the lowest quarterly figure since records began. Employer liability claims also declined to 9,995, a 55% decrease since 2019.
Experts attribute this decline to several factors, including the implementation of the Civil Liability Act 2018 and the introduction of the Official Injury Claim portal in 2021, which have made it more challenging for claimants to pursue low-value claims. Additionally, many law firms have exited the low-value RTA market due to unrecoverable costs and reduced profitability, according to Law Gazette.
Despite the significant drop in claims, average motor insurance premiums have not decreased accordingly. Premiums have risen, with the average cost exceeding £600 at the end of 2024. This discrepancy has led to an increase in consumer complaints and calls for a review of the insurance industry’s practices. Legal Futures Claims Media
The Association of Consumer Support Organisations (ACSO) has urged the government to investigate the private motor insurance market, highlighting the disparity between the falling number of claims and rising insurance costs.
Implications for Legal Practitioners
The decline in personal injury claims presents challenges for law firms specialising in this area. With fewer claims and reduced profitability, firms may need to adapt by focusing on higher-value cases, diversifying their services, or exploring alternative dispute resolution methods, says Law Inventory.
Conclusion
The record low in personal injury claims shows the impact of recent legal reforms on the UK’s compensation landscape. Stakeholders must navigate these changes to ensure access to justice for injured parties and maintain the viability of legal practices.
