Personal Injury Claims Stabilise in 2025, IRB Report Shows

The landscape of personal injury claims in Ireland has entered a period of sustained stability, according to the latest data published by the Injuries Resolution Board (IRB). In its comprehensive report for 2025, the statutory body—formerly known as the Personal Injuries Assessment Board (PIAB)—revealed that claim volumes have levelled out following years of fluctuation. The board received a total of 20,077 claim applications over the course of the year. This figure represents a marginal 4 per cent decrease compared with 2024, but more significantly, it remains 35 per cent lower than the pre-pandemic levels recorded in 2019. This stabilisation suggests a new normal in the Irish claims environment, heavily influenced by recent legislative and judicial reforms aimed at streamlining the resolution process and reducing the burden on the Courts Service.

A closer examination of the claim categories reveals subtle shifts in the types of incidents being reported. While motor and public liability claims experienced slight declines of 3 per cent and 2 per cent respectively, employer liability claims bucked the trend with a 1 per cent increase. Industry observers note that the overarching reduction in claim volumes continues to highlight the profound and lasting impact of the Personal Injuries Guidelines. Introduced by the Judicial Council in 2021, these guidelines were designed to bring consistency and proportionality to award levels across the Republic of Ireland.

The Divergence of General and Special Damages

The Personal Injuries Guidelines specifically govern general damages, which are intended to compensate claimants for the pain, suffering, and loss of amenity arising from an injury. The IRB report illustrates a clear downward trajectory in this area, with the median award for general damages in the second half of 2025 settling at 12,000 euro. This represents a substantial 29 per cent reduction when compared to the pre-guidelines figures of 2020. However, the guidelines do not cap special damages, which are calculated to cover specifically identifiable financial losses incurred as a direct result of an accident.

It is within the realm of special damages that the economic realities of 2025 become starkly apparent. The median figure for special damages in the latter half of the year stood at 910 euro, marking a striking 34 per cent increase compared to 2020. The IRB attributes this sharp rise to broader inflationary pressures impacting the Irish economy. Claimants are facing significantly higher out-of-pocket expenses for private medical treatments, physiotherapy, and specialist consultations. Furthermore, the escalating costs associated with vehicle repairs, alongside higher claims for loss of earnings in a high-wage environment, have driven up the financial compensation required to restore injured parties to their pre-accident financial position.

Rising Complexity in Employer Liability Claims

While overall award values demonstrated relative stability in the second half of 2025—with the overall median award rising by 6 per cent to 14,170 euro—the employer liability sector experienced a dramatic surge. The median award for workplace injury claims jumped by an exceptional 27 per cent, reaching 20,600 euro. This spike is not indicative of a sudden increase in workplace accidents, but rather a shift in the severity of the claims being processed. The IRB notes that a greater proportion of employer liability applications are now linked to more severe, life-altering injuries.

Consequently, special damages within the employer liability category increased by 17 per cent. Severe workplace injuries naturally necessitate more extensive medical interventions, prolonged rehabilitation, and extended periods off work, leading to substantial loss of earnings claims. This trend contributed to an 8 per cent increase in the overall average award value across all categories in 2025, bringing it to 20,559 euro. Notably, the board made over 50 awards valued in excess of 100,000 euro in the second half of 2025 alone, a significant increase from the 30 such awards made in both the first half of 2025 and the second half of 2024.

Shifting Claim Profiles and Dispute Resolution

One of the most encouraging trends identified in the IRB report is the evolving profile of claims retained within the board's non-adversarial framework. Since the implementation of the Personal Injuries Guidelines, there has been a consistent decline in the proportion of claims assessed as minor in severity. In 2021, minor injuries accounted for a massive 86 per cent of all awards. By the second half of 2025, this figure had decreased to 74 per cent. Conversely, the share of awards allocated for moderate-to-severe injuries has nearly doubled, rising from 15 per cent to 27 per cent over the same period.

This shift is a strong indicator of the IRB's growing capacity to handle complex cases. Historically, more serious and high-value claims were likely to bypass the board and proceed directly to costly litigation within the Irish court system. The retention of these complex claims demonstrates increased confidence in the board's assessment mechanisms and its enhanced mediation services. However, the report also highlights slight dips in engagement metrics. The consent rate—the proportion of respondents agreeing to the IRB assessment process—fell to 69 per cent in 2025, down from 71 per cent the previous year. Similarly, the final acceptance rate of awards dropped from 50 per cent to 47 per cent.

Despite these minor fluctuations in acceptance rates, the overarching financial impact of the Injuries Resolution Board remains highly significant for the Irish state and the insurance sector. The board's annual report confirms that a total of 213 million euro in compensation was awarded to injured parties last year, representing an increase of 45 million euro compared with the previous twelve months. Crucially, by resolving these claims outside of the traditional courtroom setting, the IRB estimates that 88 million euro was saved in avoided legal costs. This substantial saving underscores the continued value of the board in providing a timely, cost-effective, and fair resolution mechanism for personal injury claimants across Ireland.