Wednesday 9 July 2025 – Insurance Ireland welcomes remarks made by An Taoiseach Micheál Martin today that Government will not implement the Judicial Council’s recommendation to increase injury awards by 16.7%, and hails it as a win for the insurance reform agenda, and ultimately, consumers.

In the days after the publication of the Injuries Resolution Board 2024 Annual Report and the Central Bank’s National Claims Information Database Mid-Year Reports 2024, both of which showed increases in claims and low, albeit improving, levels of claims being settled in the Injuries Resolution Board, Insurance Ireland is pleased by this decision, as any increase in award levels at this stage would undo the progress achieved to date under the Government’s Insurance Reform Agenda.

The Personal Injury Guidelines were initially introduced to bring consistency and predictability to personal injury award levels. The Guidelines have helped the Injuries Resolution Board reduce legal costs and increase claimant acceptance rates. The improved consistency and transparency has brought new entrants to the Irish insurance market and has encouraged a greater risk appetite among incumbents. This progress in the Irish insurance market is enhanced as a result of today’s decision not to implement the 16.7% increase.

Moyagh Murdock of Insurance Ireland said: “Today’s decision is a strong endorsement of the Government’s commitment to meaningful insurance reform. It protects the progress made in recent years and ensures that consumers continue to benefit from a more stable and affordable insurance environment. A 16.7% increase in awards would have undermined this progress, driving up costs and potentially deterring new market entrants.”

“We must remember that the Personal Injury Guidelines were introduced to address the historically high cost of claims in Ireland compared to our European neighbours. They were designed to make insurance more accessible and affordable for individuals, families, and businesses alike. For example, small business owners who previously struggled with soaring liability premiums have begun to see relief as a result of improved risk appetite from existing providers and new entrants coming into the market providing choice and competition. Community groups and voluntary organisations, which are vital to social cohesion, have also benefited from more predictable insurance costs and again improved availability.”

“Looking ahead, we would propose that the process for reviewing these Guidelines includes benchmarking and empirical evidence. A transparent, inclusive mechanism that allows for stakeholder engagement and benchmarking against EU and UK standards will be essential to maintaining a fair and sustainable claims environment.”

Insurance Ireland and its members remain fully committed to supporting the Agenda for Insurance Reform. Today’s announcement is a reaffirmation of the importance of evidence-based policymaking in delivering long-term benefits for consumers and the broader economy.

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