Whiplash Tariff Review Announcement – November 2024

Tariff Review is good news for insurers

The Government has today published the long awaited review of the Whiplash Tariff, which was completed in May but not revealed until now.  The resulting 14%-15% increase will be seen as a win for compensators:

CPI has been retained as the appropriate metric, whereas the higher RPI rate is applied to other damages under the JCG.

The 2021 Tariff included a buffer for future inflation.  The calculation applied is to remove that buffer, add CPI from May 2021 to May 2024 to reflect actual inflation (this avoids double-counting the original buffer and actual inflation), and then add a further buffer for projected inflation to May 2027.

This produces the increases below:

A copy of the report can be found here: Statutory Review of the Whiplash Injury Regulations 2021

There is one point of interest.  Applying a 14%-15% increase keeps all figures below £5,000.  Does this suggest that an increase in the injury small claims limit is less likely?

Whilst we await the conclusion of the consultation and implementation date, we would expect the above to be approved. 

If you would like to discuss the review, or any aspect of the injury market, please feel free to contact Alan Hayes or Paul Challoner at Carpenters: 

Alan Hayes, ah@carpentersgroup.co.uk

Paul Challoner, pch@carpentersgroup.co.uk