Rise in injury payouts will hit us all where it hurts – we need to curb latest hikes in Irish insurance premiums

The Irish Sun

18-05-2025

THE cost-of-living crisis shows no sign of ending. Among the many recent price increases is soaring car insurance.
New stats show that
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Motor premiums shot up in the first six months of last year
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Childcare settings is a sector that has historically reported high insurance costs
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Irish Senator Linda Nelson Murray
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This is an increase of 12 per cent in the past two years alone. Reforms were introduced in the sector in recent years, which initially saw premiums coming down. But the recent jump in the
Despite a series of hard-won changes aimed at lowering costs – particularly through new personal injury guidelines – many motorists, businesses and community groups now feel blindsided by rising rates.
Fuming punters want to know why the cost of premiums are on the rise again – comfortably overtaking general inflation.
Writing in The Irish Sun on Sunday today, Senator Linda Nelson Murray says motorists, businesses and sports clubs are under huge pressure already.
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THE introduction of the personal injury guidelines three years ago was one of the most significant reforms made to insurance in decades.
It was a key part of the previous Government's commitment to reducing premiums for us all, be it for a car,
We did it because we were total outliers compared to other countries. Our awards were sometimes 100 per cent higher.
Compared to our neighbours in
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So proposed increases to those guidelines must be put on hold to ensure motorists, businesses,
I have serious concerns about a recommendation from the Judicial Council that personal injury awards should be increased by almost 17 per cent in the coming weeks.
CLAIMS HALVED
When we implemented the guidelines, awards were reduced. In fact, there was a 40 per cent reduction in personal injury claims where the injury was sustained by visitors to businesses and public spaces between 2019 and 2023.
Claims relating to cafés, hotels and
In childcare settings, a sector that has historically reported high insurance costs, 256 personal injury claims were identified over five years, compared to nearly 170,000
So, we can clearly see that the implementation of the guidelines worked in reducing claims.
Our awards are still higher than many countries, but it has been a pivotal moment and instrumental in helping to reduce premiums.
We don't want to see insurance for our cars, cafés, community groups, charities, football clubs and golf clubs rise, but if we allow the personal injury guidelines to go up this is exactly what will happen.
'SUBSTANTIAL PROBLEM'
It will also impede the work of the Injuries Resolution Board at a time when the previous Government did so much to get claims processed.
The National Claims Information Database 2023 Liability Report found that average legal costs are less than €1,000 for cases finalised at the Injuries Board, but over €23,000 once it enters into litigation, while awards for claimants were the same in either channel.
Legal costs are already a substantial problem and will only increase if the proposal on guidelines is adopted.
The last change to awards was in 2022, just three years ago, and Ireland's insurance costs are still higher than many other
We see young motorists paying huge premiums, and in fact the recent report from the Central Bank showed motor insurance premiums increased by nine per cent in the first half of last year — and that is with the current reforms and guidelines.
There are so many groups and businesses that still cannot get insurance, or cannot get insurance at a fair price.
We need to see increased availability and affordability in insurance premiums.
PROTECT BUSINESSES
I personally know the stress of trying to get insurance for a business, as I'm one of the hundreds of business owners who has struggled with this.
I don't want to see other business owners put under the same pressure.
Right now, businesses are faced with a myriad of increased costs and we simply cannot add more fuel to the fire by doing something that will drive up premiums.
The places we go to everyday — running clubs, cafés, crèches, play centres — and the festivals we attend will all be affected by increased insurance premiums.
The Government has launched the public consultation phase to support the Action Plan on Insurance Reform and I encourage all business owners to have their say on how we can better support them through reform.
The closing date is Monday May 19, so if you want to have your say on insurance reform, get your response in.
I urge the Minister for Justice to protect our businesses, groups, community centres and sports clubs, and pause or stop the rise in personal injury awards.
In our Programme for Government, we committed to further action to drive down insurance costs impacting households, motorists and businesses, and this is now our first early test.