Rising Insurance Premiums Questioned Amidst Declining Injury Claims

Recent data from the Injuries Resolution Board (IRB) indicates a slight increase of 1% in personal injury claims last year, totalling 20,318, yet these figures remain below pre-pandemic levels. This has sparked debate among insurance reform advocates who argue that the current rise in insurance premiums for motor, home, and business coverage is unwarranted.

The IRB, responsible for handling non-litigated or settled personal injury claims, revealed that the number of claims is still 35% less than in 2019. Despite the recovery of employment levels and traffic volumes to pre-pandemic states, the reduction in claim numbers is notable.

Decline in Accident Claims

Accidents in workplaces, businesses, and public spaces saw a dramatic 40% drop, while motor claims went down by 30%. Last year, workplace injury claims decreased by 5% compared to 2023, and incidents in businesses and public areas stayed constant compared to the previous year.

The financial aspect also showed a downward trend, with the median award to claimants dropping by 29% over five years, from €18,422 in 2020 to €13,000 in 2024. Similarly, the average award value fell by 21% to €18,967.

Increased Acceptance of Assessments

In 2024, the acceptance rate of assessments by both claimants and respondents rose to 50%, up from 48% in 2023 and 44% in 2022. This suggests a shift towards resolving more cases through the IRB instead of legal proceedings.

Brian Hanley from the Alliance for Insurance Reform, an organisation resisting high premiums, commented that the persistent decrease in claim numbers makes recent insurance premium hikes unjustifiable. He emphasised the importance of preserving the IRB as the most equitable and expedient method for resolving claims.

Impact of Proposed Government Changes

Hanley highlighted concerns regarding the Government’s proposal to increase personal injury awards by 17%, alongside a three-year review of the Judicial Guidelines. These changes could potentially drive more cases away from the IRB towards costly litigation.

“Higher awards will inevitably lead to higher premiums, and Ireland already experiences significantly higher awards compared to many other countries,” Hanley stated. “Individuals and organisations, including motorists, businesses, sports, community, and voluntary groups, simply cannot bear such an outcome.”