PRESS RELEASE

3rd October 2024

Embargoed until 00:01am, 4th October

€75 million saved in litigation costs in one year yet no meaningful reduction in public liability premiums. 

• “Whilst the Government’s programme of reform appears to be delivering savings for insurers, it is not delivering for liability policy holders such as businesses, sports, community and voluntary organisations, who continue to see their premiums increase.”

• Alliance For Insurance Reform welcomes call by Minister Dara Calleary at the launch of the Injuries Resolution Board Annual Report 2023 for the benefits of insurance reform to be “passed onto businesses and consumers via reduced premiums.”

The Injuries Resolution Board are generating significant savings and related benefits, as their 2023 Annual Report makes clear:

• Notwithstanding a 10% increase in claim volumes in 2023, overall claim volumes are 35% lower than 2019 figures.
• Higher consent (71%) and acceptance (48%) rates resulted in savings of €75 million in avoided litigation costs. 
• The value of assessments made in 2023 was €105 million lower than in 2019.
• The Personal Injury Guidelines are clearly having an impact with median awards down 37% and average awards down 23%.

Speaking about the report’s findings, Alliance Board member and owner of Kidspace play centres in Rathfarnham and Rathcoole, Tracy Sheridan asked “where are all the savings going when they aren’t going to reduce people’s premiums? Assessment values are €105 million lower than in 2019 and €75 million was saved in litigation costs last year alone. These are not small sums of money and yet for many businesses and consumers out there, premiums continue to rise. This is a fairness issue and at a time when the cost of business is so high, we desperately need to see savings being passed on. 

I welcome Minister Caleary’s call for the benefits of insurance reform to be “passed onto businesses and consumers via reduced premiums”. Whilst the Government’s programme of reform appears to be delivering savings for insurers, it is not delivering for liability policy holders such as businesses, sports, community and voluntary organisations, who continue to see their premiums increase and a dearth of competition in many sectors of the market.”

“It is very welcome to see the consent and acceptance rates at the Injuries Board increase and there is certainly scope for them to grow further in the coming years. A recent report from the Central Bank showed no meaningful difference in public liability awards settled through litigation (€23,458) rather than through the Injuries Resolution Board (€23,122), yet legal fees are, on average, 22 times greater (rising from €1,024 to €22,803). The high volume of cases being settled in the litigation channel (69%) requires urgent attention as these additional and often unnecessary costs are inevitably being picked up by policy holders and threaten to undo much of the benefit of the Government’s reforms. The increase in consent and acceptance rates in today’s report are a step in the right direction.”

—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 46 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.