Insurance Premium Hikes Questioned Amid Decline in Injury Claims

The latest figures from the Injuries Resolution Board (IRB) reveal that personal injury claims have seen a modest increase of 1% to 20,318 in the past year. However, the number remains significantly below pre-pandemic levels, raising questions about the justification for rising insurance premiums for motor, home, and business policies.

Insurance reform advocates argue that with claim numbers still 35% lower than 2019, there is little ground for the continuing escalation in premium costs. Despite a resurgence in employment and traffic similar to pre-pandemic times, the data illustrates a notable dip in claims compared to 2019.

Decline in Various Claims Categories

Workplace, business, and public space accidents saw a 40% decrease, while motor claims were down by 30%. Specifically, workplace injury claims dropped by 5% last year compared to 2023, whereas claims in businesses and public areas remained unchanged from the same period.

The median compensation for claimants also fell by 29% over five years, decreasing from €18,422 in 2020 to €13,000 in 2024. The average award value similarly declined by 21%, now averaging €18,967. Furthermore, the acceptance rate of assessments by both claimants and respondents has increased, reaching 50% in 2024, up from 48% in 2023 and 44% in 2022.

Calls for Government Action

Brian Hanley, representing the Alliance for Insurance Reform, emphasised the unwarranted nature of premium hikes given the consistent decrease in claim volumes. He urged the government to preserve the IRB as an efficient settlement mechanism.

Hanley highlighted concerns over the proposed 17% increase in personal injury awards and the associated three-year review of the Judicial Guidelines, which might shift more cases from the IRB to costly litigation. He warned that higher awards would inevitably lead to increased premiums, a burden Ireland already bears in comparison to other countries.

Impact on Various Sectors

According to Hanley, the potential for increased premiums poses a significant threat to motorists, businesses, sports entities, and community organisations, which may find such costs unsustainable.

The ongoing debate underscores the need for a balanced approach to insurance reforms, ensuring that premiums remain fair while maintaining access to justice for claimants.