Insurance Ireland Statement on the Central Bank of Ireland’s NCID Motor Insurance Employers’ and Public Liability Insurance Mid-Year Data Release for H1 2023

• Private Motor Insurance Premiums decreased by more than 20% since 2017.
• Despite increase of 20% total claim costs and a significant increase in damage claim costs in particular,  motor insurance increased marginally by 0.5% in H1 2023 compared to H2 2022
• Claims settled through the litigated route cancel out the real benefit of the reforms for consumers. While the compensation for claimants is consistent with other settlement channels, legal fees and time constraints threaten the outcome for claimants.
• Employers and Public Liability – increase in total claims costs of 2% in H1 2023 compared to the 2015 to 2019 period.

2nd July 2024: Insurance Ireland today welcomed the NCID motor insurance and employers and public liability insurance mid-year report, which shows that in the first half of 2023, the average written premium on motor rose by only 0.5% to €561, against a backdrop of significant inflation in the rest of the economy, demonstrating the Government’s insurance reform agenda is working and insurers are delivering for consumers.  However, damage claims costs rose sharply in the period, by a total of nearly 50%.

Moyagh Murdock, CEO of Insurance Ireland, said: “Today’s figures published by the Central Bank demonstrate and reaffirm that insurers have followed through on their commitment to pass on the benefits of the recently reaffirmed Personal Injuries Guidelines to consumers, with Irish motor insurance customers having benefitted by significant decreases from 2017 to 2023, and particularly being cushioned from the impact of significant cost inflation of the last couple of years.  This is in contrast with the insurance market in the UK and Europe, with the Government’s reforms and the industry’s strong commitment to deliver for consumers having insulated the Irish insurance market against the steep increases in costs and premiums seen in neighbouring countries.  We are also confident that in the Employers’ Liability and Public Liability market, the reforms will impact over time.  ”

Moyagh Murdock said “However, there are some worrying trends that could impact over time such as the concerning increase in road collisions, a contributing factor to the sharp increase in damage claim costs and the continued pattern of claims going the litigated route.  Successive NCID reports have consistently shown that the litigated channels still account for the vast majority of claims costs, despite the fact that litigation is slower and doesn’t actually deliver better outcomes for claimants, with most of the additional cost going to legal fees.  This further highlights that the strengthened role of the Injuries Resolution Board to increase settlements through mediation and without unnecessary litigation is critically important.”

“Taking motor insurance as an example, it is great to see that two out of three cases are settled directly or through PIAB (now the Injuries Resolution Board). However, these cases account for only 21% of injury claims costs,” Moyagh Murdock added.

Murdock continued, “37% of claims settle through litigation, making up 79% of total costs for injury claims in motor insurance.  This is adding unnecessary cost into the system and prevents insurers from delivering further benefit to consumers.”

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