According to a new report, there has been an increase of 18% in personal injury claims from 2010 to 2011, despite a decline of 11% in the number of accidents. A study by The Institute and Faculty of Actuaries has found that claim rates have risen by almost a fifth in the period of a year with a “clear correlation” between injury hotspots and locations where claim management companies operate. The “staggering” increase in personal injury claims is the largest ever recorded and has cost insurers an additional £400 million. Locations of claim management companies (CMCs) have recorded higher claim rates, with some areas of the UK overtaking claim rates in the US in 2010. These “claim clusters” include Liverpool, Sunderland, Wigan, Oldham and Manchester, with the lowest claim rates observed in Aberdeen, Dorchester, Cambridge, Kingston upon Thames, and Exeter. A whopping 40 percent increase has been recorded for motor insurance premiums since 2010. With the additional costs to the insurance industry between 2010 and 2011, the premiums are predicted to rise further. Actuaries Chairman David Brown said: “The increase in costs to insurers is likely to result in a rise in motor insurance premiums for drivers. "The clear correlation between claims management office locations and the 'hotspots' for bodily injury claims suggests the two are interlinked. We expect to see legislation coming soon which will affect the way in which these claims management companies do business, which may account for the significant increase seen in 2011 – it is possible this is a last hurrah.”