• 48% increase in the Average Circuit Court Award from €11,941 in 2013 to €17,722 in 2016 – Courts Service Annual Report
• “Rising court awards set the benchmark and increase expectations for all unsettled claims in the system” Kevin Thompson, CEO, Insurance Ireland
• €42,400 in legal & other costs paid on an award of €100,000 – Dept. of Finance report
• In Q3 2016, legal service prices were 10.4% higher than the comparable quarter in 2013 – National Competitiveness Council

Issued 26 July 2017. Insurance Ireland has highlighted its concern over the rising claims pay-outs in the courts as evidenced by a 48% increase in the average Circuit Court personal injury award from €11,941 in 2013 to €17,722 in 2016.

The publication of the Courts Service Annual Report yesterday follows the release last week of reports from the Personal Injuries Assessment Board, the Department of Finance and the Central Bank of Ireland which all pointed to the trend of rising personal injury award levels and the legal and other costs associated with settling them.

Kevin Thompson, CEO of Insurance Ireland stated “From 2013 to 2016, the average Circuit Court award increased by 48% from €11,941 to €17,722. Most litigated personal injury claims are settled in the Circuit Court and this increase creates a new benchmark and level of expectation for all unsettled claims, therefore increasing costs in the system.”

“The trends are clear, claims costs are increasing and the effect is being felt across the system. Just last week the Department of Finance said there was a 23% increase in total motor claims paid from 2011-2016 and the Injuries Board said there was a 50% increase in the amount it paid for all personal injury awards from 2011-2016.”

Kevin concluded; “These rising costs must be tackled and Insurance Ireland believe there should be an acceleration of the proposed reforms to strengthen the powers of the Injuries Board to handle more claims and reduce the cost of expensive litigation.”

Notes:

Average Circuit Court award: 

                                  €                                                                              

2016:                    17,722

2015:                    16,429

2014:                    13,550

2013:                    11,941

• In Q3 2016, legal service prices were 10.4% higher than the comparable quarter in 2013 – National Competitiveness Council Costs of Doing Business in Ireland 2017

• Legal and other costs make up 42% of the compensation amount paid to claimants. The Department’s report states that if there is an injury compensation payment of €100k to a claimant, there will be, on average, a further payment of €24.9k to cover claimant legal and other costs and €17.2k to pay for insurer legal and other costs.  This would result in total payments by the insurer of €142.4k of which the claimant would receive €100k.

• There was a 7% increase, from €22,091 in 2013 to €23,634 in 2016, in the average compensation per motor injury claim – Dept. of Finance report 

Ends

Media contact:

John Byrne

Communications Manager, Insurance Ireland

Tel: (+353) 01 644 7781 / 087 938 3852

Nuala Buttner

Q4 Public Relations

Tel: 01 475 1444 / 085 174 4275