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Latest Central Bank Data illustrates significant increase in Motor Insurance Claims Costs, which have risen 23% in 2024 from 2023.

Insurance Ireland notes the findings of the Central Bank’s NCID Private Motor Mid-Year Report 2024 with growing concern, particularly regarding the sharp rise in claims costs and the escalating burden of legal expenses. These trends, if left unaddressed, pose a serious risk to the progress made by the Government’s Action plan for insurance reform for…

Insurance Ireland today (Thursday, 3rd July 2025) commented on the publication of the Central Bank of Ireland’s (CBI) National Claims Information Database (NCID) mid-year report on the Private Motor Insurance and Employer (El) and Public Liability (PL) Markets. This data is the definitive source of claims data containing analysis on the cost of claims, how claims are settled, and the various component costs that make up the claim settlements.

Insurance Ireland notes the findings of the Central Bank’s NCID Private Motor Mid-Year Report 2024 with growing concern, particularly regarding the sharp rise in claims costs and the escalating burden of legal expenses. These trends, if left unaddressed, pose a serious risk to the progress made by the Government’s Action plan for insurance reform for motor insurance for Irish consumers.  Insurance Ireland also says that now is not the time to introduce an increase to the Personal Injuries Guidelines, with the Judicial Council currently recommending an increase of 16.7%.

Key Points:

  1. Surging Claims Costs
  • The total cost of private motor claims in H1 2024 reached €414 million, a 38% increase on the pre-COVID average and 23% higher than H2 2023.
  • This surge is primarily driven by damage claims, which have risen 179% in cost compared to the 2015–2019 average.
  • The average cost of all damage claims now stands at €3,150, up 111% from pre-COVID levels.

 

  1. Legal Costs Continue to Escalate
  • Despite a reduction in the number of injury claims, legal costs remain stubbornly high:
    • For claims under €100k, legal fees rose to €7,128 in H1 2024, up from €5,512 in the 2015–2019 average.
    • In litigated claims, legal costs now account for over 40% of the total claim cost.
  • This trend undermines the intent of the Personal Injuries Guidelines, which aimed to streamline settlements and reduce legal overhead.
  1. Personal Injuries Guidelines – Mixed Progress
  • While 75% of injury claims now settle under the Guidelines, only 46% of litigated claims do so.
  • The slow progress to a resolution in litigation is a concern, as these cases do not materially change the outcome for claimants but are the most expensive and time-consuming.

Moyagh Murdock, CEO, Insurance Ireland said, “Since the first Government-led Insurance Reform agenda, Ireland has benefited from a thriving and attractive insurance market and consumers and businesses have benefited from lower costs. The CBI claims data released today, is a reminder of how fragile these gains are, and the impact inflation can have on the insurance market. That the total costs of claims settled in H1 2024 is higher than any period in the time series, and up 23% on the same time last year, tells its own story. In an inflationary environment, where claims costs are more likely to rise, Government, needs to remain focused on measures introduced to keep costs down.

“Inflation is only part of the picture,” Ms Murdock said. “This data illustrates that more action needs to be considered to increase use of the Injuries Resolution Board as it is clearly the most time-effective and cost-effective solution for claimants. The data today demonstrates claimants receive the same compensation going through the IRB as through the litigated route but in a much shorter timeframe[1][i].  It is also clear that now is not the time to introduce an increase to the Personal Injuries Guidelines of 16.7%, as recommended by the Judicial Council.  This would clearly add even more cost into the system.”

The key findings from the CBI report include:

Private Motor:

  • The total costs of claims settled in H1 2024 was higher than any period in the time series, up 38% on the 2015-2019 pre-COVID average and 23% higher than H2 2023.
  • The total cost of claims settled in H1 2024 was €414m, a 23% increase on H2 2023.
  • There have been increases in both the number and cost of damage claims.
  • The average cost of typical motor insurance claims has increased dramatically since 2015-2019 (average cost).

 

  • The combined effect of increases to both the number and average costs of damage claims is that the total cost of damage claims settled in H1 2024 was 179% higher than the 2015-2019 average.
  • Injury claims costs increased by 13% in H1 2024.

 

Employers Liability and Personal Liability:

  • The total cost of claims settled in H1 2024 was 12% lower than the pre-COVID average and 10% lower than in H2 2023
  • This decrease is primarily driven by injury claims as damage claims make up a small proportion of overall liability claim costs.
  • In H1 2024, 42% of all Employer’s and Public Liability injury claims settled under the personal injury guidelines, including 22% of litigated claims.

 Insurance Ireland urges the Government to:

  • Accelerate reform of the legal system to reduce unnecessary litigation and legal costs.  The proposed awards uplift of 16.7% will further erode the progress that was made in the past 2 years.
  • Strengthen application of the Personal Injuries Guidelines, particularly in the courts.
  • Further support for the dispute resolution mechanisms to streamline claims handling.

Ends

Media contact

Nuala Buttner

Q4 Public Relations

Tel: +353 (0)85 1744275

Notes:

Motor

  • More motor damage claims and damage claims costing more. The number of motor damage claims settled increased by 7% in the first half(H1) of 2024 and was 32% higher than the 2015-2019 average. Motor damage claims accounted for 56% of motor claims costs in H1 2024.
  • The average costs of a motor damage claim increased by 24% in H1 2024 to €3150.
  • For motor injury claims that settled for less than €100,000 in 2024 the average compensation cost was down 23% compared to 2020 while the average total cost decreased by 13%.
  • The reason average total cost did not reduce by more was that average legal costs went up.
  • The average legal cost for litigated claims has increased and was 14% higher in H1 2024 compared to 2020.
  • 75% of motor injury claims settled in 2024 settled under the Personal Injuries Guidelines, including 46% of litigated claims. However claims settled through litigation represent the largest proportion of total motor injury claims cost and the impact of the guidelines is uncertain in this channel.
  • For motor injury claims that settled through litigation for less than €100,000 and in less than 5 years under the Personal Injuries Guidelines the average compensation cost was 25% lower while the average total cost was 12% lower.
  • 72% of motor injury claims costs were in the litigation channel from 2019 to H1 2024.

Employers Liability & Public Liability (ELPL)

  • The total cost of claims settled in H12024 was €144m.
  • For injury claims that settled for less than €150,000 in H1 2024 average compensation cost was down 12% compared to 2020 while average total cost  increased by 3%.
  • For ELPL injury claims less than €150,000 average compensation cost for litigated claims has decreased by 15% since 2020( from €31,144 to €26,384) while this has been offset by an 18% increase in average legal costs( from € 20,971 to €24,786), which means that average total claims cost is abut the same in H12024 as in 2020( €52,645 in 2020 versus €52,372 in H1 2024).
  • 87% of ELPL injury claims costs were in the litigation channel in H1 2024.
  1. Settled Injury Claims – Average Costs Litigated Compensation €26,384 vs IRB €26,177 for claims less than €150k NCID Report