13 December 2024

Insurance Ireland says today’s publication by the Judicial Council of revised Personal Injuries Guidelines, which recommends an average 16.7% increase in awards, will increase the cost of claims.

They believe this recommended increase will undo the progress achieved under the Government’s Insurance Reform Agenda, which initially introduced the guidelines to bring consistency and transparency to court awards. The guidelines have helped the Injuries Resolution Board reduce legal costs and increase claimant acceptance rates.

Moyagh Murdock, CEO of Insurance Ireland, said “Insurance Ireland and our members remain totally supportive of the Personal Injury Guidelines and the work of the Injuries Resolution Board. However, we note the Judicial Council’s report and we believe the recommended increase undermines the vital progress made to date on controlling the claims environment in Ireland.”

“The Injuries Resolution Board previously confirmed that average 2023 awards were down 23% on 2020 but the increase recommended by the Judicial Council today will reverse over 70% of that reduction. This will potentially add significantly to the overall cost of claims which will ultimately feed into the cost of insurance for Irish consumers.”

The Personal Injury Guidelines was the centrepiece of the Government’s Insurance Reform Agenda, designed and intended to address the relatively high cost of claims in Ireland when compared to other European countries. The intent was also to provide consistency, and attract new insurers to the Irish market, and as a consequence help to increase the availability, and reduce the cost, of insurance for Irish consumers. Considering the original purpose of the guidelines, Insurance Ireland calls on all parties to reconsider this inflationary recommendation, and benchmark the level of awards against other EU jurisdictions and the UK, before making a final decision in relation to the proposal to make such a material change to the guidelines after only 3 years of operation.