- The number of claims lodged with the Injuries Resolution Board in 2023 is 35% lower than in 2019
- Median award value shows 39% decrease relative to 2020
Insurance Ireland welcomes the release of the Injuries Resolution Board’s latest Personal Injuries Award Values report, covering January 1st to June 30th 2023. The availability of this data is an indispensable insight into the state of the claims environment and provides indisputable proof that the Agenda for Insurance Reform has been having a significant impact on claims amounts.
Insurance Ireland was heartened that the total number of claims handled by the Injuries Resolution Board throughout all of 2023 has climbed slightly compared to 2022, with a 10% increase. However, looking at pre-pandemic levels, the 2023 claim volume was 35% lower than 2019, so there is more work to do.
The average award value was €17,248, representing a significant reduction of 28% from 2020. Meanwhile, the median award value was €11,150, a 39% decrease from the median award of €18,422 in 2020. In H1 2023, 45% of awards were less than €10,000 with 65% of awards being under 65%. This is a significant change from 2020 when only 12% and 30% of awards were under €10,000 and €15,000 respectively. These decreases can be attributed to the introduction of the Personal Injuries Guidelines which replaced the Book of Quantum.
Insurance Ireland was also please that in the first half of 2023, 48% of all awards were accepted by both claimants and respondents. This continues a positive upward trend in acceptance rates in the last number of years. Following the introduction of the Personal Injury Guidelines in 2021, acceptance rates fell sharply to 36% immediately after.
The increase in acceptance rates among claimants is a positive sign of the impact of the Reform Agenda. However, there are worrying trends that could impact over time such as the concerning increase in road collisions, including the sharp increase in damage claim costs and the continued pattern of claims going the litigated route as was shown in the most recent National Claims Information Database (NCID) mid-year reports.
Successive NCID reports have also shown that the litigated channels still accounts 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 though mediation and without unnecessary litigation is critically important.
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