PRESS RELEASE

23rd October 2024

• The Central Bank publishes sixth annual Private Motor Insurance Report of the National Claims Information Database (NCID).

• The 2% increase in premiums in 2023 likely the thin end of the wedge as CSO data shows premiums now increasing at upwards of 10%.

• Decrease in injury costs thanks to Personal Injury Guidelines lessening the impact of damage (cost of repair) increases.

• As inflation begins to stabilise now, we hope this will result in premium stability for customers too. 

Speaking about the release of the Central Bank’s 2023 NCID report on private motor insurance, CEO of the Alliance Brian Hanley noted the 2% average increase in premiums on the year. “This is likely the thin end of the wedge as recent CSO figures showed the cost of motor insurance was up by 10.3% in the year to September. Premiums had come down in recent years thanks to the Government’s programme of reform and greater competition. Whilst inflation has undoubtedly contributed to the increased cost of vehicle repairs it has begun to stabilise now, and we need this to quickly result in premium stability for policy holders too.”

We welcome the fact that the Personal Injuries Guidelines are more frequently in use in settling litigated injury claims, having risen from 3% in the first half of 2022 to 27% by the second half of 2023.  This should lead to greater savings in respect of injury costs as is clear from the savings the Guidelines have generated in other settlement channels.

These savings have lessened the adverse impact of the increased cost of damage repairs and should increase year on year as more cases are settled using the Guidelines across all settlement channels. 

—ENDS—

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

1 The average cost of claims that settled under the Guidelines in 2023 were: 38% lower for claims that settled directly before the Injuries Board; 22% lower for claims settling through Injuries Resolution Board; and 39% lower for claims settling directly after the Injuries Board, when compared to claims that settled in the same channel under the Book of Quantum in 2020. There have not been enough litigated claims settled under the Guidelines to assess the impact on the average cost of a claim in this channel.

Notes

• 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.