Data from the Lloyd’s Market Association and DAC Beachcroft highlights widening cost gaps in severe bodily injury claims, with a small number of jurisdictions driving disproportionately high payouts.

The International Bodily Injury Index, covering 96 jurisdictions worldwide, is based on two years of data, and reveals patterns in severity, volatility and cost drivers. It shows the most expensive claims are concentrated in Canada and Australia, where lifetime care and earnings assumptions significantly increase awards.

Minor injury awards across much of Europe remain relatively stable. In England and Wales, a standard minor injury scenario rose by 4% from £2,924 to £3,051. However, outliers persist.

The gap between jurisdictions widens significantly for serious injuries. Amputation and brain injury cases can produce multi-million pound outcomes in Ontario and New South Wales, far exceeding European norms. Volatility is also greatest in these catastrophic categories, meaning a small number of claims can materially impact insurer portfolios.

Interest is another major cost driver. In Argentina, rates linked to Banco Nación have reached high levels, while in Spain penalty interest of up to 20% a year may apply in some cases. Other jurisdictions apply little or no interest, creating sharp contrasts in exposure.

David Fitzpatrick, chair of the LMA’s International Liability Business Panel and executive underwriter at Ascot, commented: “Now that we have two years of data, we can see more clearly where bodily injury exposure is concentrated, where outcomes are stable and where they are moving quickly. The Index underlines the importance of jurisdiction-specific understanding, particularly for high severity claims where differences in approach to care, earnings and interest can transform the ultimate cost.”

Chris Mather, secretary of the LMA’s International Liability Business Panel and senior executive, technical underwriting at the Lloyd’s Market Association, added: “For insurers, the value of the Index is practical. It supports sharper underwriting assumptions and more resilient reserving, and it helps claims teams understand where local factors, including interest and severe injury awards, can materially influence ultimate outcomes and timeliness. This can support timely, well-informed decision making and fair resolution for claimants.”

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