A combination of economic and regulatory factors has seen a surge in bodily injury claims across Europe.

Reinsurer Swiss Re has published its new Motor Bodily Injury Landscape Report 2025, examining injury claims trends across 15 European markets. The findings highlight a “clear and consistent rise in claims costs”, driven by inflationary pressures, evolving legal frameworks, and the increasing cost of care.

The report added: “Since the Green Card system was established 1953, and the very first Motor Insurance Directive was implemented in 1972, Europe has continued to make great progress in improving and simplifying claims handling for victims.

“Given the increasing number of cross-border car accidents brought about by the growing mobility of European citizens, that progress has been important.

“While the Green Card system primarily aims to protect victims of road traffic accidents caused by foreign vehicles, the Motor Insurance Directive (MID) is an EU law that requires all motor vehicles in member states to be covered by compulsory third-party insurance, allowing them to be driven across the EU with only one policy. It also established a mechanism for compensating victims of accidents caused by visiting vehicles and ensures minimum levels of cover for personal injury.”

It continued: “Following Brexit, the UK’s equivalent legislation remains in force. These frameworks have greatly improved compensation mechanisms for victims of cross border road traffic incidents.

“With that said, when it comes to the level of compensation for bodily injury claims in Europe, we still observe enormous differences in the amounts awarded, the workings of the legal environment, the specific local compensation culture, and the role of social security systems. In addition to legislators who establish compensation rules, lawyers and courts also have a significant impact on shaping these claims.”

The study found rising care costs are the single largest driver of increasing bodily injury claim expenses, reflecting wage growth and shortages in healthcare professionals. UK compensation law reform is having an effect with the introduction of a single personal injury discount rate of +0.5% represents a landmark alignment across all UK jurisdictions.

The study added inflation and regulatory changes, such as Spain’s updated Baremo and Italy’s new Single National Table, are reshaping compensation levels and predictability across markets.

Diverging compensation systems, are creating new risk, as despite cultural and legal differences, all 15 markets showed an upward trend in the net cost of bodily injury claims.

Technological and safety developments, from ADAS adoption to 30 km/h urban zones, are expected to reduce claim frequency, though severe injury costs continue to climb.

Swiss Re’s head Casualty Treaty Underwriting EMEA, Patrick Roder explained: “Higher care costs, wage inflation and evolving legal frameworks are core themes behind the continuing rise of bodily injury claims costs across Europe. These pressures are reshaping the economics of motor insurance, with implications for both affordability and market sustainability. Amid this evolving landscape, re/insurance plays an increasingly critical role in managing cost volatility, ensuring fair compensation for victims and stability for insurers.”