The cost of settling motor insurance claims in Ireland rose by 23% in the first half of 2024 compared to the previous six months, driven largely by an increase in damage-related claims, according to new data released by the Central Bank’s National Claims Information Database (NCID).
Between January and June 2024, insurers paid out €414 million in motor claims. The number of motor injury claims also rose by 10% over the same period, though it remains 20% below pre-pandemic levels from 2015–2019.
Despite the overall increase in costs, claims under €100,000 have seen reduced average compensation payments—down 23% from 2020. However, when all injury claims are considered, the average total cost has remained virtually unchanged at €38,553, underlining the continued influence of large claims on the sector’s expenses.
Three-quarters of claims in the first half of 2024 were settled under the Personal Injuries Guidelines introduced in 2021, including 46% of litigated claims.
The NCID also reported a 10% decline in the total cost of employers’ and public liability claims, which fell to €144 million. However, legal costs continue to rise. For claims under €100,000, legal fees averaged €7,128 in H1 2024—well above the pre-Covid average of €5,512. For litigated claims, legal expenses accounted for more than 40% of the total cost.
The report comes as the Government prepares to approve a proposed 16.7% increase in the Personal Injuries Guidelines—drawing strong criticism from both insurers and businesses.
Tracy Sheridan, owner of Kidspace play centres and board member of the Alliance for Insurance Reform, said the timing of the proposed increase is “deeply troubling.”
“The only bright spot had been the reduction in the cost of injury awards, and now the Government is set to increase these by almost 17%. If this happens, there will be no check on costs. Premiums are already rising each month as people struggle with the cost of living,” she warned.
Insurance Ireland echoed these concerns, saying the rising claims and legal expenses “pose a serious risk to the progress made by the Government’s insurance reform efforts.” The industry group urged against any increases to the injury guidelines at this time.
Hazel Rock, Head of Insurance Services at Brokers Ireland, noted that while the guidelines are reducing costs in employer and public liability claims, litigation remains the dominant method of dispute resolution—driving legal fees higher.
Rock called for stronger powers for the Injuries Resolution Board (IRB) and more binding authority on awards to help curb costs.
As insurers, brokers, and business groups continue to raise alarms, pressure is mounting on the Government to reconsider the proposed guideline increases and further streamline claims settlement processes to avoid driving premiums higher for policyholders.
