• Set against this, how can the government justify taking steps that will drive the cost of people’s car insurance even higher?

• If adopted, the 17% increase in personal injury awards will lead directly to even greater increases in car insurance premiums.

Today the Central Bank released the NCID Private Motor Insurance Mid-Year 2024 Report.

The report shows a sharp rise in motor insurance premiums of 9% in just the first 6 months of last year(2). As anyone who has renewed their motor policy more recently knows, premiums have only continued to increase since that time. The increase has, in large part, been attributed to inflation and the increasing cost of vehicle repairs. 

Set against this, how can the government justify taking steps that will drive the cost of people’s car insurance even higher? The Minister for Justice, Jim O’Callaghan, is currently considering a recommendation from the Judicial Council that personal injury awards be increased by almost 17% in the coming weeks.  Notwithstanding that awards are higher here than in most other countries(3) and the relatively short time the current award guidelines are in existence (2021), if adopted it will lead directly to even greater increases in policyholder premiums. Motorists, businesses, sporting, community and voluntary groups simply cannot afford for this to happen. 

Given the adverse consequences of such an increase and the myriad of policy considerations involved, the proposal to raise personal injury awards needs to be put before the relevant Oireachtas Committee for considered, public debate. We urge Minister O’Callaghan and the government to take this course of action in the best interest of policyholders. 

—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.

1. See below on pages 4 and 5 of the NCID Report

‘The average written premium shows the average premium of policies sold over the period, which reflects premium trends faster than the average earned premium. The average written premium increased by 9% from €567 in 2023 to €616 in H1 2024.’

1. Personal Injury Commission Report 2 (2018) – 7551 Department of Business, Enterprise & Innovation – Second Report of Personal Injuries Commission.indd