Cold calling refers to the aggressive marketing tactics employed by claims management companies (CMCs) regarding minor injuries. Tactics can include members of the public receiving spam text messages and cold calls, sometimes even being encouraged to make a claim where there has been no accident.

One of the most common personal injuries people claim compensation for is whiplash. More than 1,500 whiplash claims are made in the UK every day, costing the insurance industry more than £2 billion a year – and adding £90 to the average annual motor insurance premium.

The only way to get to the root of the problem is to take the financial incentives out of the system and regulate firms so that those caught breaking the rules are not able to continue operating.

The ABI is campaigning for a reform of the personal injury claims system to eliminate fraudulent and exaggerated claims and make the system more efficient for genuine claimants. For more information, click here.