16 December 2025: Insurance Ireland welcomes the publication of the latest 2025 annual NCID liability report and the comprehensive insights it provides into premium trends, profitability and settlement patterns across the insurance market. Transparency of this nature is essential to helping consumers, policymakers and the industry better understand the evolving claims environment, particularly in the context of continued inflationary pressures.

We particularly note the clear evidence that the Personal Injuries Guidelines are delivering a meaningful and sustained impact. The report shows ongoing reductions in average settlement compensation for claims resolved under the Guidelines, demonstrating the value of a consistent, fair, and predictable framework for assessing personal injury claims. This is especially significant given that a review of the Guidelines has proposed an uplift of 16.7%, underlining the importance of maintaining balance and stability in the system.

However, these gains are being eroded by spiralling legal costs and delays in litigation. In 2024, 71% of injury claimants and 87% of total injury claim costs were settled through litigation, despite the Injuries Resolution Board offering a faster, fairer, and dramatically cheaper alternative. For litigated claims under €150,000, legal fees averaged €25,055 – almost equal to the compensation amount (€25,935). For all litigated claims, legal costs averaged €33,550 compared to €43,361 in compensation.

The time factor makes this even worse. Litigated claims take an average of 5.7 years to settle, compared to just 2.1 years through the Injuries Resolution Board. After almost six years of waiting, the claimant typically gains only around €500 more than if they had accepted an Injuries Board award –  just 1.93% extra, that is hardly a win for anyone. This is not justice; it is inefficiency that drives up costs for consumers and businesses.

The NCID data is clear: while the Guidelines have corrected compensation levels, the benefits are being offset by excessive legal costs and delays. Every euro wasted on unnecessary litigation is a euro added to the cost of doing business in Ireland, undermining competitiveness and keeping premiums higher than they should be.

From a consumer perspective, it is important to emphasise that a viable and trusted alternative to litigation exists. The Injuries Resolution Board offers a faster and more cost-effective route to settling claims, helping to reduce legal expenses for all parties.

Although profits are down over the period 2023 to 2024, the report shows that the industry remains modestly profitable. This is essential to ensure Ireland remains a market that is competitive and offers choice for consumers and businesses. A reasonable return on the investment and risk taken by insurers is critical to attract new entrants, foster competition, and deliver better value for policyholders – not to inflate prices.

Our Call to Action

Government and stakeholders should work together to consolidate the progress made under the reform agenda and address the inefficiencies that remain. This means promoting faster, fairer, and more cost-effective claims resolution, reducing unnecessary delays, and ensuring the system works in the best interests of claimants, consumers, and businesses. In particular, strengthen the Injuries Resolution Board as the default pathway for personal injury claims.

By focusing on collaboration and continuous improvement, we can lock in the benefits of reform, deliver lower premiums for consumers, and create a fairer, faster system for all.

Ends.

For media queries, please contact:

• Nuala Buttner, Q4PR, nuala@q4pr.ie, 085 174 4275
• Rachel Power, Q4PR, rachel@q4pr.ie, 087 939 9605