· NCID Report shows that the premium for 91% of policies was less than €5k, while over three quarters of all policies had premiums of less than €2k
· Employers’ liability (EL), public liability (PL) and commercial property (CP) have been and remain challenging markets for insurers, with 0.5% profitability over the period 2009 to 2024
· The impact of the Personal Injuries Guidelines has yet to be felt in this sector of the insurance market with the majority of cases in 2022 (80%) going the litigated route and still awaiting court hearings. Only 2% of litigated cases in 2022 were settled under the new Personal Injuries Guidelines
· Report highlights the effectiveness and efficiency of the Insurance Resolution Board (formerly PIAB) claims settlement process
Insurance Ireland today commented on the publication of the Central Bank of Ireland’s (CBI) third annual National Claims Information Database (NCID) report on the employers’ liability (EL), public liability (PL) and commercial property (CP) markets.
Moyagh Murdock, CEO of Insurance Ireland said: “We welcome this report, which provides useful and informative insights into the Irish employers’ liability, public liability and commercial property insurance markets. The report shows that 90% of policies had a premium of less than €5k, with 77% at less than €2k and 57% at less than €1k. The report shows further stabilisation in the Irish market with profitability in 2022. The report also points to a more stable market environment following a longstanding period of loss making in these market segments, with an overall 0.5% level of profitability between 2009 and 2022. Nonetheless, this market segment remains very challenging in retaining existing providers and attracting new entrants into Ireland. In contrast, the motor insurance market has seen two new entrants into the market in the past 12 months. The true impact of the new guidelines will depend on the adherence of the injury guidelines through litigation as well as through the Injuries Resolution Board or direct settlement. It is interesting to note that the cost of litigation ranges between 68% and 92% for awards less than €150k while the difference in awards through litigation is comparable considering the protracted time it takes to reach a settlement (78% for EL & 86% for PL).”
The NCID report shows that:
· 90% of policies had a premium of less than €5k
· 77% of policies had a premium of less than €2K
· 57% of policies had a premium of less than €1k
· Just 4% of claims in 2022 were settled through the Injuries Resolution Board (formerly PIAB), and a further 6% were settled directly with insurers, either before or after PIAB
· The remaining 90% chose the litigation route, and only 2% have been settled under the Personal Injuries Guidelines.
· As a result, there is no indication of the impact of the Personal Injuries Guidelines on the litigated cases.
· On Employers Liability, the latest NCID report shows that on claims that went through the Injuries Resolution Board’s process, there was a 33% decrease in the amount awarded under the Personal Injuries Guidelines, with an average of €26,686 awarded in 2022. In claims that were settled directly with insurers, there was an approx. 18% decrease.
· On Public Liability, there was also a 33% decrease in Injuries Resolution Board settled claims, with an average of €21,881 awarded in 2022, while claims settled directly saw a decrease of approximately 40%.
· The average cost of claims increased by 34% for EL and 44% for PL between 2019 and 2022.
Moyagh Murdock said: “Following on from the recent NCID report on motor and home insurance, the report underlines the clear, positive impacts from the Government’s Agenda for Insurance Reform and insurers remain committed to pass on the benefits of the reform. Particularly the Personal Injuries Guidelines and the strengthened mandate for the Injuries Resolution Board. It is very disappointing to see the very high level of claims still going the litigated route. Because of the scale of this, the impact of Personal Injuries Guidelines has yet to be felt. However, we can see the positive impact on claims settled through both the Injuries Resolution Board route and direct with insurers. It is clear that the Government’s reform agenda is working. Future data sets from Central Bank may give a clearer picture in relation to the impact on litigated claims. Positive results in this area will be central to stabilising the Irish market and attracting new players into the market to the benefit of businesses and consumers. That is why we strongly support the Government’s work in this space. This in our view will deliver better value for businesses and consumers in the long run.”
Ends