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Insurance Ireland calls for accelerated reform of costs in insurance

  • Phase 2 of the Cost of Insurance Working Group Report states “there is a significant issue in relation to the cost of personal injury awards in Ireland for some commonly occurring personal injuries, particularly those of a less severe nature’”
  • The report confirms that Irish award levels are significantly above those in the UK for minor, moderate and severe neck, back and ankle injuries (Dept. of Finance Report pg. 78)
  • “It is time to tackle the fundamental insurance costs that make up the price paid by a business and that is awards and the cost of settling them” - Kevin Thompson

 

Issued 25 January 2018. Insurance Ireland has said the publication of Phase 2 of the Government’s Cost of Insurance Working Group Report can help bring stability to Employers’ Liability and Public Liability insurance, but the pace of reform must be accelerated.

Kevin Thompson, CEO of Insurance Ireland stated, “It is time to tackle the fundamental insurance costs that make up the price paid by a business and that is awards and the cost of settling them. Insurers want reform and support the Report’s objective of bringing consistency to personal injury award levels, but the pace of reform outlined needs to be accelerated.”

“This report confirms that our award levels are high relative to the UK with the report stating, ‘there is a significant issue in relation to the cost of personal injury awards in Ireland for some commonly occurring personal injuries, particularly those of a less severe nature’.  This is evident with a minor ankle injury in Ireland allowing for an award of up to €54,700 compared to up to €12,554 in the UK.”

“The trend is also evident in the Personal Injuries Assessment Board (PIAB) annual reports where there was a 30% increase in the average Employers’ Liability award from 2011 to 2016 (€27,102 to €35,159) and a 17% increase in the average Public Liability award from 2011 to 2016 (€22,686 to €26,592).”

Kevin concluded, “Insurance Ireland fully recognises the concerns of business owners and agrees with the assessment of the stakeholders in the report that the emphasis should be on what needs to be done to make the overall claims process more efficient and effective. There is a significant opportunity to bring about structural reform in 2018 and all stakeholders should provide their data to ensure we implement the policies needed to reduce the cost of claims.”

Ends

Media contact:

John Byrne

Communications Manager, Insurance Ireland

Tel: (+353) 01 644 7781 / 087 938 3852

Nuala Buttner

Q4 Public Relations

 

Tel: 01 475 1444 / 085 174 4275

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