Claimants Bear the Brunt as Insurers Pocket Reform Profits

Personal injury claimants in Ireland are currently navigating an increasingly stringent compensation framework that has drastically reduced their financial redress. For years, the prevailing narrative pushed by the insurance industry suggested that curtailing claimant rights would naturally lead to a fairer, more affordable insurance market for everyone. However, the latest data reveals a starkly different reality where injured parties are making significant sacrifices while insurance premiums continue to climb. The recent publication of the Injuries Resolution Board’s 2025 Annual Report exposes a glaring disconnect between the harsh realities facing accident victims and the ongoing financial practices of major insurance providers. Injured citizens are effectively bearing the brunt of systemic reforms, yet the promised societal benefits remain entirely elusive.

A deep dive into the Injuries Resolution Board figures illustrates just how much the landscape has shifted against the claimant. Applications for personal injury compensation have plummeted, with the system experiencing a stabilisation that heavily favours cost reduction over claimant restitution. In 2025, just 20,077 applications were submitted to the board, representing a four per cent decrease from the previous year and a staggering drop of more than a third compared to 2019 levels. This sharp decline clearly contradicts the persistent myth of an out-of-control compensation culture in Ireland. Instead, it points to a chilling effect where genuinely injured individuals may be deterred from seeking the justice and financial support they rightfully deserve following an accident.

The Reality of Reduced Compensation

The financial compensation awarded to those who do pursue a claim has also been severely curtailed under the new judicial guidelines. The median award in 2025 stood at just over €14,000, which marks a significant 24 per cent reduction compared to the figures seen in 2020. While there was a slight increase in the overall cost of awards in 2024, this was not driven by generous payouts for pain and suffering. Rather, it was entirely reflective of soaring inflation impacting special damages, such as exorbitant medical costs and necessary compensation for loss of earnings. Claimants are merely trying to keep their heads above water and cover their direct out-of-pocket expenses, yet they are often portrayed as the primary drivers of inflated insurance costs.

Despite the negative framing often employed by industry lobbyists, claimants are consistently demonstrating a willingness to engage in pragmatic, non-adversarial resolution processes. The Injuries Resolution Board helped save more than €88 million in legal costs in 2025 alone, representing an increase of €12 million on the previous year. This massive saving was achieved because injured parties are increasingly opting to resolve their claims directly through the board rather than engaging in costly and protracted litigation through the Court Service. Furthermore, the introduction of voluntary mediation has proven to be a highly effective mechanism for those seeking fair redress without the immense stress of a courtroom battle.

Mediation and Efficient Resolutions

Mediation is rapidly becoming a cornerstone of the Irish personal injuries framework, offering a confidential space where claimants can explore their options and negotiate in good faith. In 2025, the mediation process boasted a remarkably strong 54 per cent agreement rate among participating parties. Cases that went through this channel were resolved, on average, in just three months, providing injured individuals with much-needed closure and financial certainty during a vulnerable time. This efficiency underscores the fact that claimants are not looking to game the system or drag out proceedings unnecessarily; they simply want equitable compensation for the harm they have suffered due to the negligence of others.

Insurers Fail to Deliver on Promises

The most troubling aspect of the current personal injury landscape is the stark failure of the insurance industry to uphold its end of the reform bargain. For years, the central justification for slashing claimant awards and tightening the legal framework was the promise of substantially lower premiums for Irish businesses, community groups, and everyday consumers. Injured citizens took the financial hit, accepting drastically reduced payouts under the strict new regime. However, data from the Central Bank of Ireland’s National Claims Information Database reveals a bitter truth that completely undermines the insurer-led narrative. Despite the massive drop in claim volumes and the sharp reduction in average award sizes, average liability premiums actually surged by a staggering 23 per cent between 2020 and 2024.

This disproportionate rise in premiums highlights a deeply unbalanced system where the savings extracted from the pockets of injured people are simply being absorbed as profit by multinational insurance firms. As the government continues to implement its Action Plan for Insurance Reform, the focus must urgently shift away from further restricting claimant rights and towards holding the insurance sector accountable. Strengthening the role of the Injuries Resolution Board should not merely be an exercise in systemic cost-cutting. It must fundamentally ensure that individuals who suffer life-altering injuries receive adequate, fair, and timely compensation. The current trajectory suggests that without decisive regulatory intervention, claimants will continue to be penalised twice—first by the trauma of their injury, and second by a reformed legal framework that diminishes their right to redress while insurers reap the financial rewards.