Issued 24 November, 2015.  Insurance Ireland has welcomed the publication of the Bodily Injuries Thematic Review by the Central Bank of Ireland.  The report concurs with Insurance Ireland’s views in relation to the key drivers behind the increase in the costs of claims in the Irish Motor Insurance market. Insurance Ireland supports changes being put in place by the Central Bank of Ireland such as the creation of the post of Head of Actuarial Function, and a requirement for companies to provide detailed information on their risk management strategies. However these changes need to be reinforced with actions to address the issues that are driving up the cost of claims costs as identified by the Central Bank of Ireland. 

Speaking about the report, Kevin Thompson, CEO of Insurance Ireland, said, “The Central Bank have identified a number of key drivers of claims costs including increasing court awards, increasing economic activity, legislative changes and increasing miles travelled. All of these factors combined have resulted in a very dynamic environment for Irish Motor Insurance companies. It is vitally important that the necessary steps are taken to address the increasing cost of motor claims.” 

Insurance Ireland is calling for the following steps to be taken:

1. With increased motoring activity on our roads, ensure An Garda Siochana and the Road Safety Authority are supported to maintain an adequate level of enforcement

2. Compensate victims at reasonable levels which society can afford. 

3. Reduce legal costs, which are still too high and which have never been tackled in litigated cases. 

4. Ensure flaws in the Injuries Board process are tackled so that more claims can be dealt with through this body.

5. Act to ensure fraudsters are deterred. Suspended sentences are not an adequate deterrent and give the impression that there is no downside to insurance fraud if caught.

ENDS