18 September 2025: Insurance Ireland, the representative body of the Insurance industry in Ireland, rejects recent assertions that the insurance sector is “holding the country to ransom” or that premiums continue to rise despite the Government’s reform agenda. Such remarks fail to reflect the reality of a highly regulated and transparent industry that plays a vital role in sustaining businesses, employment, and economic growth in Ireland. Without access to insurance, enterprises across every sector would not be viable.
Ireland is a relatively small insurance market, but significant progress has been achieved through the Government’s Action Plan for Insurance Reform. This initiative has brought stakeholders together to address challenges, increase transparency, and deliver meaningful change. The next phase of reform must build on these achievements rather than reversing them.
Increases in motor insurance premiums have been modest compared rampant inflation elsewhere in the economy, and have followed several years of premium price reduction. Motor premiums actually fell between 2017 and 2022 and even with recent increases, for example 2% in 2023 and 9% in the first half of this year, the average premium today is still about 10% lower than it was at its 2018 peak. That fact tends to disappear in the noise, but it matters: premiums remain well under pre-reform highs. The average damage cost per motor policy, in both Ireland and the UK, have seen significant increases from 2021 in line with the global surge in inflation. Offsetting this are reductions to the average injury cost per policy, with a greater level of reductions in Ireland driven by the Personal Injury Guidelines and improved claims frequency.
According to the latest confused.com car insurance price index, the average motor premium in the UK stand at €873 at Q2 2025 (and €982 in Northern Ireland), which is significantly higher than the average Motor insurance premium in Ireland (latest available data of €616 for H1 2024 from the Central Bank). The Irish insurance sector is among the most regulated and transparent in Europe. The Central Bank of Ireland’s National Claims Information Database (NCID) publishes independent, comprehensive, and publicly available data on motor, employers’ liability, and public liability insurance. These reports provide unmatched insight into claims costs, settlement trends, and premium levels all of which contribute to making Ireland an international leader in insurance transparency.
“Insurance is the backbone of Irish business. Every shop, factory, and service provider depends on it to operate securely and sustainably.”, commented Moyagh Murdock, CEO of Insurance Ireland.
“Some are now calling for a public inquiry into insurance.”, Murdock continued, “However, Ireland already has one of the most transparent insurance markets in Europe. Twice a year, the Central Bank publishes two NCID reports covering every key metric: premiums, claims, settlement channels, profitability. That transparency is something we are proud of. Another inquiry would simply spend taxpayer money to re-hash facts we already have. A more useful exercise would be to look closely at legal costs, litigation delays and the pressure points in the repair sector, because that’s where the real inefficiencies lie.”
While external pressures such as inflation, rising wages, and supply chain disruption continue to affect premiums across global markets, Insurance Ireland remains committed to engaging constructively with policymakers, businesses and consumers to protect people, businesses and assets while supporting Ireland’s long-term economic resilience.
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