Encourages greater use of Injuries Resolution Board to settle claims
Insurance Ireland welcomes the launch of the Second Action Plan for Insurance Reform, recognising it as a vital step forward in creating a more sustainable and competitive insurance environment in Ireland.
Our members have proactively embraced the recommendations set out in the First Action Plan, and we remain committed to supporting reform that enhances transparency, affordability, and international competitiveness of Ireland.
In our submission to Government, we outlined a series of targeted recommendations aimed at building on the progress made to date. As a modern and globally integrated industry, we are focused on fostering trust, encouraging innovation, and ensuring long-term sustainability in the market, all to the benefit of consumers and businesses alike.
The First Action Plan, launched in December 2020, tackled longstanding issues including high costs, limited market competition, and excessive legal expenses. Key achievements of that programme include the introduction of new Personal Injuries Guidelines, the rebalance of the Duty of Care, the introductions of mediation services to the Injuries Resolution Board.
Insurance Ireland and our members strong supported the implementation of these reforms and will continue to work with stakeholders to ensure that the Second Action Plan not only protects but builds upon these important gains.
We particularly welcome the proposed review of how and when Personal Injury Guidelines are adjusted, as this will help promote greater consistency, predictability, and fairness in awards.
The latest National Claims Information Database (NCID) Private Motor Insurance Report (October 2024), so Insurance Ireland particularly welcomes actions contained in the Second Action Plan aimed at tackling legal fees. In 2023, the average compensation for a litigated claim under €100,000 stood at €20,334, while legal costs averaged €18,097 – representing 89% of the total compensation amount (see page 50, Table 16, NCID Motor Report). This clearly demonstrates the urgent need to strengthen claimant engagement with the Injuries Resolution Board, where cases can be resolved more efficiently, at significantly lower cost, and with better outcomes for all parties involved.
In addition, we are pleased to see proposals to enhance the NCID reports and proposals to expand the Injuries Resolution Board researching and reporting, in consultation with industry, to produce reports providing data at injury level which the sector can analyse and use to the benefit of consumers. Improved transparency in these areas would support better policy development and market functioning.
Commenting on the release, Insurance Ireland CEO Moyagh Murdock said, “Insurance Ireland has long encouraged the use of the Injuries Resolution board for the settlement of claims and the measures to increase cases settled in this channel are most welcome.”
Ms Murdock continued, “We look forward to continued collaboration with Government and stakeholders to ensure that reform efforts translate into a fairer, more efficient insurance sector. It is vital we work together to ensure the efficient and effective delivery of the measures contained in today’s Action Plan.”