Paul Hutchinson
Claims Leader, Marsh
Our new Property, casualty and motor claims review, launched April 2026, references the 17th edition of the Judicial College Guidelines (JCG) and how the impact of that is being seen in claims costs, which are rising on average. Download the full report now to access detailed insights and data-driven strategies that will help you reduce costs and stay ahead of emerging risks in 2026 and beyond.
On 9 April 2026 the JCG for the Assessment of General Damages in Personal Injury Cases issued their 18th edition. The updated Guidelines went live on publication and set new indicative brackets and commentary used across courts, claimants’ lawyers and defendants (including insurers and self-insured businesses) when valuing general damages for pain, suffering and loss of amenity.
What’s new and why it matters
Publication and effective timing
The 18th edition was published on 9 April 2026. It’s intended to provide the immediate, authoritative set of brackets and guidance that courts and practitioners will rely on in assessing general damages. While the Guidelines are advisory rather than binding, they are routinely treated as the primary reference point in settlement discussions and at trial.
Key substantive changes
The edition refines and expands a number of injury categories. Notable amendments include:
- A new bracket for miscarriage claims
- Revised treatment and terminology for epilepsy-related injuries
- Substantial reassessment of awards for sexual and/or physical abuse.
The top brackets for the most serious catastrophic injuries now exceed the £500,000 mark.
Inflationary adjustment
The editors applied an uplift to the published brackets to reflect inflation since the previous edition. That uplift is approximately 8.2% (reported at c.8.2–8.3%), based on changes in the Retail Prices Index (RPI). The 17th edition of the guidelines (April 2024), yielded on average a 22% uplift to the brackets for general damages. In the last two years, therefore, this means there has been a 31% increase in damages for general damages.¹
What the 18th edition means for clients
For claimants
The updated brackets and inflationary uplift increase the starting point for valuations of pain, suffering and loss of amenity. Claimants with serious and long-term injuries are likely to see materially higher awards (and therefore higher settlement offers). The new and revised categories may also create stronger bases for valuation where previous editions were less specific.
For defendants and insurers
Expect upward pressure on settlement values and on the need for larger reserves. Defence negotiators will need to account for the new brackets in offers and in litigation strategy. This is particularly true in high-value and catastrophic cases. The revisions increase the importance of detailed medical evidence and holistic assessment of future needs. This includes care, rehabilitation and loss of amenity.
For claims handling and case management
The Guidelines’ changes reinforce the need for earlier, robust medical assessment. This also highlights the need for careful rehabilitation planning, and updated reserving protocols. Where contracts or indemnities are price-linked to damages, counterparties should review how the revised JCG figures affect exposure. For litigated matters, the Guidelines will be a central reference in pleadings, schedules of loss and at trial.
For employers and policyholders
Employers faced with employer’s liability and public liability claims should anticipate higher settlement demands. You can also potentially expect higher premium renewals over time. Self-insured entities should revisit their stop-loss arrangements and funding assumptions in light of the uplifted general damages benchmarks.
Inflationary impact: how big is the effect and where it matters most
Direct uplift to general damages
The headline uplift of about 8.2% increases the total amount of general damages used as a benchmark. For a given injury category, the starting bracket figure has moved up by that order of magnitude. For some categories, the percentage rise is larger. Certain abuse-related and other specific brackets saw higher percentage increases. This was in order to reflect contemporary case law and social context.
Knock-on effects on overall claim cost
General damages are only one component of a final award. Special damages (past and future financial losses) will also all be influenced by inflationary pressures, including:
- Future care and support
- Medical cost inflation
- Rehabilitation costs
- Legal cost inflation
For very serious claims where general damages are a big factor, the portfolio-level impact will be closer to the uplift applied to the JCG. For lower-value or whiplash-type claims (where there are tariff elements and other caps in play) the proportional effect on total claim cost will be smaller.
Systemic and market implications
An 8% uplift to the JCG brackets does not mechanically translate into an identical percentage rise in premiums or reserves across the market. The effect depends on:
- Claim mix
- Frequency vs severity ratio
- Reinsurance structures
- Claims management effectiveness.
However, the change is unambiguously inflationary for personal injury exposures. This will be a factor in pricing, reserving and capital planning discussions through 2026 and beyond.
Practical consequences observed and anticipated
Settlement behaviour
Defendant offers are likely to move closer to the new tables in higher-severity cases. You should also expect negotiations to start from elevated baselines. Some claimants may be encouraged to litigate rather than accept lower offers. This raises litigation risk in borderline matters.
Reserving and capital
Insurer claims teams should review existing reserves for open claims. They should also adjust provisioning for new claims in line with the updated damage brackets and anticipated wider cost pressures.
Dispute focus areas
The choice of inflation index (RPI versus CPI/CPIH) remains a contested point in academic and policy debate. That debate could surface in specific cases where defence teams seek to argue discounting or alternative inflation measures for future losses. The JCG editors note the issue but have left index selection to the courts.
Differential impact by severity
The largest percentage change in claimant benefit is concentrated among more serious categories, including abuse and catastrophic injury brackets. This means clients with a higher severity concentration will feel a larger effect.
Claims cost inflation vs soft market cycle
Insurance market soft and hard cycles refer to the fluctuating conditions in the insurance industry. A hard market is characterized by:
- High premiums
- Strict underwriting
- Limited capacity
- Reduced competition
These often follow significant losses or catastrophes. Insurers become more cautious, and coverage is harder to obtain. Conversely, a soft market features:
- Lower premiums
- More relaxed underwriting standards
- Increased capacity
- Heightened competition
This makes insurance more accessible and affordable. Currently, the UK insurance market is in a soft cycle where clients are generally benefitting from lower premiums. While premiums are coming down, claims costs on average are increasing due to inflationary pressures. This includes the uplifts to the JCG guidelines. While market cycles depend on more than just claims costs, sharp increases in claims costs can catalyse the hardening of the market.
What can you do about it?
When answering this question, you need to think about what you can control and what you can’t. You can’t single-handedly control the runaway inflation train, nor can you control the wider economic and geopolitical environment. What you can control is your claims. You can make hay while the sun shines and enjoy the lower premium the soft market brings. However, the market will inevitably harden and premiums will start to rise. How sharply they rise is up to you and how you control your risk exposure and your claims. Investing now in claims frequency and severity reduction strategies might help to limit the impact of a hardening market in future and reduce pricing volatility. Marsh is here to support you with pro-active risk management, claims reduction and defensibility. Contact us to find out more about these solutions.
Access the JCG 18th edition here
Sources
Property, casualty and motor claims review
Downlod the full report now to access detailed insights and data-driven strategies that will help you reduce costs and stay ahead of emerging risks in 2026 and beyond.
