• With legal fees now matching awards in the majority of claims, the Government needs to take action to ensure far greater numbers are settled at the Injuries Resolution Board (IRB).  

• Despite the significant programme of government reform, Central Bank report finds that “based on all available metrics premium has trended upwards in recent years.”

• Insurers recorded a 10% profit margin (€137m) on liability insurance in 2024, while the Central Bank reports a further 4% rise in average liability premiums – contributing to a 23% increase in premiums since 2020.

• Rising legal costs and the increasing volume of claims settling via litigation has undone much of the savings made by the Personal Injuries Guidelines.

Today the Central Bank published the NCID Liability Insurance Report for 2024. Key findings from the report include: 

• Legal fees are now effectively matching compensation awards in the majority of claims settled (2).
• Despite reductions in the volume of claims and size of awards in recent years the average premium for liability policies rose by a further 4% in the year, contributing to a 23% increase in premiums since 2020.
• The liability insurance market was very profitable in 2024, with an operating profit after tax of 10% of total income. 

Commenting on today’s report, Tracy Sheridan, owner of Kidspace play centres in Rathfarnham and Rathcoole and Board member of the Alliance, said:

“We now have a system where two people with similar injuries can get similar compensation, but one case costs a few hundred euro through the Injuries Resolution Board while the other costs tens of thousands in legal fees.

It is highly unlikely nearly 70% of claims (3) need to be resolved via litigation and every unnecessary euro spent on litigation is a euro taken from wages, community services and local investment. Government must take decisive action to ensure far greater numbers of appropriate claims are settled at the Injuries Resolution Board. Whilst steps have been taken to increase the volume of cases settling at the Injuries Board in recent years, it is clear much more needs to be done.”

The Alliance also highlights what it calls a “deep disconnect” between falling claims, strong insurer profits and stubbornly rising premiums.

In the context of liability cover the NCID shows that insurers made an after-tax profit of 10% of total income in 2024, while the average premium for liability policyholders rose by a further 4% in the year, contributing to a 23% increase since 2020.

Tracy Sheridan continued:

“The Central Bank’s own figures make the situation crystal clear: claims are down in recent years, insurer profits are up, and premiums keep rising. Businesses, community groups and voluntary organisations are being told that premiums reflect costs, yet insurers appear to be the only ones benefiting from the cost reductions. After all the reforms they introduced in recent years to bring down premiums, the government must be as annoyed with the report’s findings as small business owners.”

—ENDS—

FOR FURTHER INFORMATION CONTACT:
contact@insurancereform.ie or Alliance CEO, Brian Hanley at 086 8620 974. 

Notes:

1. The Alliance for Insurance Reform brings together 47 civic and business organisations from across Ireland, representing over 55,000 members, 700,000 employees, 614,000 volunteers and 374,000 students in highlighting the negative impact of persistently high premiums and calling for real reforms that will quickly reduce liability and motor insurance premiums to affordable levels and keep them that way.
2.