Private Motor Insurance Premiums fall by 5%
- According to the Central Bank’s NCID report for H1 2022, the average earned premium has fallen by 5% to €578.
- Today’s report shows that insurers are passing on the benefits of the new Personal Injuries Guidelines to consumers in anticipation of their full effect feeding through the system.
- Damage claims have increased substantially due to economic factors among other issues.
25th April 2023: Insurance Ireland today welcomed the latest NCID report, which shows that the average earned premium has fallen by 5% to €578.
Moyagh Murdock, CEO of Insurance Ireland, said: “Today’s figures demonstrate and reaffirm that insurers have followed through on their commitment to pass on the benefits of the new Personal Injuries Guidelines to consumers. They have done so in anticipation of the full effect of the Guidelines feeding through the system.”
Two off-setting effects can be observed in the total settled claim costs in H1 2022: a significant increase in the number and cost of damage claims and a decrease in the number and cost of injury claims.
Moyagh Murdock continued: “The report shows a notable increase in the number and cost of damage claims due to various inflationary pressures among other issues. Notwithstanding these pressures, which are being felt by consumers in sectors right across the economy, insurers have managed their costs to mitigate the knock-on effect to consumers.”
“It is concerning to see that only 13% of claimants settled through PIAB, accounting for only 6% of injury claims costs,” Moyagh Murdock added. “39% of claimants settled through litigation, making up 79% of total costs.
“Claimants receive roughly the same level of award whether opting for litigation or PIAB. This trend is negating some of the benefits implemented as part of the Government’s Action Plan for Insurance Reform.
“It is well publicised that the cost of legal fees feeds into the cost of insurance significantly, so this issue needs to be prioritised in order to swing the pendulum back in favour of consumers and the wider economy.
“Against this backdrop, it is also essential that the key outstanding component in the Government’s Action Plan for insurance Reform, the rebalancing of the duty of care, is expediated,” said Moyagh Murdock.