• Report makes clear that too few cases are being finalised at the Injuries Resolution Board stage, and too many are embarking unnecessarily into the more expensive litigation channel, although only 4% get as far as a Court award.

• The proposed increase in injury awards currently before the Minister for Justice will only exacerbate this problem. 

• Report finds that average legal costs are less than €1,000 for cases finalised at the Injuries Board but over €23,000 once it enters into litigation, whilst awards for claimants were the same in either channel (also at €23,000).

• Insurer profits continue to rise at the expense of higher premiums and despite reduced volume of claims and size of awards. 

Today’s NCID Liability Report 2023 from the Central Bank makes clear that high litigation costs and the large volume of claimants settling via the litigation route continue to adversely affect the cost of insurance overheads for businesses, sports, community and voluntary organisations all across the country. 

Overall, 68% of claims were finalised after litigation is issued, accounting for 87% of the cost of liability injury claims. Despite the government’s strong programme of reform, the volume of cases going the litigation route has increased by 17% in the five years from 2019 to 2023. 

Grocery store owner and Alliance Board member, Flora Crowe said that ‘this report makes clear that too few cases are being disposed of at the Injuries Resolution Board and too many are unnecessarily pursuing the more expensive litigation channel.’

Flora also highlighted the negative impact the proposed increase in personal injury awards will have (a massive 17% increase in compensation levels was recommended by the Judicial Council and is currently with the Minister for Justice). 

‘If we continually review upwards personal injury awards every three years and it takes two and a half years to settle a claim at the Injuries Board, claimants will simply hold on a few months and bring their case into litigation. Not only will awards increase but legal fees will increase the cost of claims exponentially as this data shows. Businesses simply can’t afford for this to happen. 

We have not seen the benefit of the government’s substantial reforms to date, and we simply cannot afford another cost of business increase – something that is certain to happen if awards increase by the 17% proposed.

The government made commitments to businesses in the new programme for government and this will be an early test of the sincerity of that commitment. The report finds that average legal costs are less than €1,000 for cases settled at the Injuries Board but over €23,000 once it goes the litigation route. However, the Central bank report also found that average awards remain the same in either channel, so who has most to gain from going into litigation? The government needs to grasp the nettle here.’

The Central Bank report showed that liability premiums continued to increase (4% in 2023 and 17% since 2020) despite falling claims volumes and reducing award sizes, whilst insurer profits were 13% on the year, equating to tens of millions of euro. 

—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.
2. The report found that premiums increased by 4% in 2023 and have increased by 17% since 2020, despite a range of government reforms. The market has also proven highly profitable for insurers, showing an operating profit of 13% in 2023.
3. Data below is from the ‘Employers’ Liability, Public Liability and Commercial Property Insurance Report 4, National Claims Information Database (NCID)’ for the year 2023, published March 2025.