Whiplash-like claims account for 85% of third party motor bodily injury (TPI) claims and just under half the cost of settlement, according to research by the Institute and Faculty of Actuaries
Report author David Brown said: 'Whiplash-like injury claims continue to increase for third party motor insurance, despite a 15% drop in quoted premiums and the fall in the number of damage claims over the same period.'
He said it now costs insurers more than £10,000 to settle small injury claims, a year-on-year increase of 26%.
Brown said: 'The impact of this claim inflation is significant and contributes 85% of the numbers of small injury claims, and just under half the cost.
'This inflation of cost to insurers does not mean that claimants are proportionally receiving more. For these types of claims the average amount typically received by claimants has remained at around 45% [of the cost to the insurer] since 2010.'
Last month Justice Secretary Chris Grayling said the government would introduce an independent medical panel to crack down on fraudulent whiplash claims.