Latest news with #NationalClaimsInformationDatabase
Irish Independent
05-08-2025
- Business
- Irish Independent
Transparency about where money goes can help get a grip on insurance costs
The open consultation process that informed this plan is a model for how policy reform should be approached, enriched by diverse perspectives, with over 70 submissions focused on outcomes that benefit consumers, businesses, and the wider economy. The plan sets out a structured schedule of actions and is built around six core themes, which reflect a comprehensive approach to reform. The emphasis on legal reform, innovation, and affordability aligns well with the challenges facing the sector. It is also encouraging to see 10 priority actions, which target the most pressing issues. The plan's emphasis on enhancing the efficiency, authority, and impact of the Injuries Resolution Board (IRB) is welcomed. Action 3 is a priority reform aimed at reducing litigation, lowering costs, and improving the speed of claims resolution. Preventing claimants from modifying their claims post IRB and introducing legal costs for its claims are pragmatic steps that will encourage early resolution and discourage unnecessary litigation and delays. This will promote consistency in how injuries are assessed as currently, the IRB and the court are effectively assessing different cases due to the introduction of additional reports for those claims going into court. This has prevented the IRB from reaching its full potential. Another positive step is the commitment to report on accepted IRB assessments, rather than just those issued, half of which are typically rejected. This will enhance transparency and support future improvements. Action 4 proposes benchmarking Irish injury awards against those in the UK and other European countries. This raises questions, as similar analysis was believed to have informed the 2021 Personal Injuries Guidelines. Insurers are now compiling data to support this work. While the focus is currently on the UK, it's vital that the scope includes European jurisdictions with less prevalent compensation cultures. These systems offer valuable insights into achieving fair compensation while maintaining market sustainability. It's been over 20 years since the Troika identified Ireland's high legal costs as a barrier to competitiveness. Yet legal fees remain a major driver of insurance premiums. The development of legal cost scales under Action 6 is long overdue, having first been proposed in the 2020 Action Plan. Although scoping was completed in June 2022, further progress was deferred pending sufficient data on the impact of the Judicial Council's Personal Injuries Guidelines, likely in the hope that reduced awards and litigation would lessen the need for further reform. However, legal costs remain a persistent issue. According to the 2024 National Claims Information Database (NCID) mid-year report, motor injury claims under €100,000 that settled through litigation saw legal costs rise on average to €18,859, compared to just €836 through the IRB, some 22 times higher. These costs now represent 94pc of the average compensation award and 48pc of the total claim spend in the litigation channel. While average compensation has fallen by 17pc, the total cost per claim has only decreased by 1.6pc, meaning the benefit of lower awards has been largely offset by rising legal fees. Similarly, tougher penalties and enhanced intelligence sharing on fraud in Action 12 would help protect honest policyholders and restore trust in the system. Further investment in the Garda Fraud Bureau will be key to ensuring the success of this initiative. Action 21 proposes amendments to the Judicial Council Act that could extend the review period for the guidelines from three to seven years. The current review cycle is too short to allow reforms to take root, contributing to instability and unpredictability, which are precisely the issues the guidelines are meant to address. These changes, along with mandated consultation with the IRB in the review process and clearer Oireachtas oversight, will help ensure that the guidelines remain relevant and balanced. While proposals such as the introduction of pre-action protocols and case management in personal injury claims have not been prioritised in either the 2020 or 2025 reform plans, they have the potential to deliver significant impact. Pre-action protocols encourage early resolution of claims and reduce the need for litigation. Where court action is necessary, structured case management would ensure claims are handled efficiently. Together, these measures could help reduce legal costs, speed up outcomes, and ease the burden on all parties involved. Learn more Insurance reform is not a one-time fix. It's an ongoing process that requires persistence, adaptability, and more importantly, collaboration between government, industry, legal professionals, and consumers. The new Action Plan offers a strong foundation. It reflects a shared commitment to change and a recognition that lasting progress only happens when insurers, policymakers, legal professionals, and consumers work together. Lisa Dennehy is chief claims officer at Aviva Insurance Ireland DAC
RTÉ News
24-07-2025
- Business
- RTÉ News
Government launches plan to bring down insurance costs
Improving pricing transparency and giving the Injuries Resolution Board (IRB) more powers are among the main measures outlined by the Government to bring down insurance costs in the latest action plan on insurance reform. The plan, launched today, runs until 2029 and contains a total of 26 actions to bring down insurance costs, ten of which are described as 'priority actions'. They include a focus on transparency in the insurance sector, particularly in terms of pricing. As part of this, the Department of Finance will work with insurers to introduce a transparency code. Other priority actions include strengthening the powers of the IRB, a feasibility study on a cap for certain categories of personal injuries awards, exploring tougher penalties on insurance fraud and measures to reduce the number of uninsured drivers. The Government says it aims to tackle the reliance on litigation, particularly for motor insurance claims and that this will be an important element of the proposed IRB reforms. According to recent figures from the Central Bank's National Claims Information Database (NCID) on settled private motor claims, it is 22 times more expensive for a claimant to take a claim through litigation rather than through the board. Meanwhile, the NCID found the timeframe for settled claims through litigation is significantly longer than those settled through the IRB, with the level of awards not being materially higher. Enhancing the Office to Promote Competition in the Insurance Market as well as streamlining the authorisation process for new market entrants will also be a key focus of the plan. These priority actions are viewed as the ones that will have the biggest impact on insurance affordability, transparency and availability. According to official figures, comprehensive cover now accounts for over 90% of motor policies, and with a rise in repair costs more consumers are now less inclined to protect their no claims bonus and more likely to claim on their insurance, which impacts overall premiums. As part of the development of the action plan, the Department of Finance held a public consultation process that received over 70 submissions from private businesses, political parties, representative bodies and members of the public. The last action plan on insurance was published in 2020 and led to initiatives such as rebalancing of the duty of care and the personal injuries guidelines, which have helped to bring down the value of claims. The action plan was launched by Minister of State for Insurance Robert Troy, and Minister for Enterprise Peter Burke. Minister Troy said that "despite progress on insurance costs in recent years as a result of the Government's previous action plan on insurance reform, an inflationary global climate has led to some costs creeping up again". He added that "it is vital that consumers are seeing greater transparency from the insurance sector, particularly in regard to how their premium is communicated to them". The implementation of the action plan will be led by Minister Troy through the Department of Finance and monitored by the Cabinet Sub-Group on Insurance Reform, which is chaired by Tánaiste Simon Harris. Mr Harris said the Government's latest plan "builds on the strong insurance reforms to-date which have led to improvements in transparency and have seen personal injury awards reduce". "By Government working together, we can deliver tangible progress in this next phase of insurance reform so that the benefits are felt by both businesses and consumers," he added. Prior to publication of the action plan, the Cabinet Sub-Group on Insurance Reform agreed to not seek approval from the Dáil and Seanad on an increase in personal injuries awards, as recommended by the Judicial Council. This was a move welcomed by both insurers and consumer groups, who had warned it would have driven up premium costs.
RTÉ News
03-07-2025
- Automotive
- RTÉ News
Cost of settling motor insurance claims increased 23% in the first half of 2024
There was a 23% increase in the cost of settling motor insurance claims during the first half of last year compared to the second half of 2023, according to latest figures from the Central Bank's National Claims Information Database (NCID). It shows the cost of motor claims settled between January and June 2024 was €414 million, with the Central Bank attributing the higher cost to an increase in damage claims. Meanwhile, the figures show the number of motor injury claims settled increased by 10% between January and June 2024 compared to the second half of 2023, but remained 20% lower than the 2015-2019 pre-Covid average. For motor injury claims that settled for less than €100,000 in H1 2024, the average compensation cost was down 23% compared to 2020, while the average total cost decreased by 13%. When including all injury claims however, the average total cost is effectively unchanged at €38,553, highlighting the contribution of large injury claims towards total claims costs. In H1 2024, three quarters (75%) of all claims were settled under the Personal Injury Guidelines - this includes 46% of litigated claims. Separately, the NCID shows the total cost of employers' liability and public liability claims fell by 10% to €144 million between the first half of 2024 and the preceding six months (H2 2023). The number of injury claims over the period (which accounted for the vast majority of all public liability claims) remained effectively unchanged at €2,100. In H1 2024, 42% of all employers and public liability injury claims were settled under the Personal Injuries Guidelines (22% of litigated claims). The figures also show that despite a fall in the number of injury claims, legal costs remain elevated. For claims under €100,000, legal fees rose to €7,128 during the first half of 2024, up from €5,512 (2015–2019 pre-Covid average). With regard to litigated claims, legal costs accounted for over 40% of the total claim cost in H1 2024. The rise in the cost of motor insurance claims comes as the Judicial Council's proposed 16.7% increase in the Personal Injuries Guidelines is due to be approved by the Government. Commenting on the NCID figures, the Alliance for Insurance Reform said they "make clear the Government's looming increase in personal injury awards couldn't come at a worse time for policyholders". Tracy Sheridan, owner of Kidspace play centres in Rathfarnham and Rathcoole and an Alliance board member said: "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. We are already seeing month-on-month premium increases as the cost of living continues to spiral out of control. The Government needs to stand up for policyholders, not make things more difficult for them," she added. Regarding the fall in the cost of liability claims, Ms Sheridan said "there really is no excuse for liability premiums not to come down for business, sport, community and voluntary organisations as the cost of claims continues to reduce". Meanwhile, Insurance Ireland - the group representing insurers - said it notes "with growing concern" the "sharp rise in claims costs and the escalating burden of legal expenses". It said "these trends, if left unaddressed, pose a serious risk to the progress made by the Government's action plan for insurance reform for motor insurance for Irish consumers". Insurance Ireland also said "now is not the time to introduce an increase to the Personal Injuries Guidelines". Brokers Ireland also points to what it says are "inflated legal costs". Hazel Rock, Head of Insurance Services at Brokers Ireland, said the guidelines are having a clear cost-reducing effect on employer and public liability claims settled either directly or via the Injuries Resolution Board but that "there is still some way to go before we see the full impact of the measures taken by the Government to date. "While industry reports would suggest more competition is entering the market in areas where it has been limited to date, nonetheless insurance brokers still face the consequences of limited insurer appetite in high risk and niche sectors," she said. "The Injuries Resolution Board is underutilised, with a majority of claims still going to litigation, contributing to inflated legal costs. "Granting greater authority to the IRB and making awards binding in most cases, would help greatly, but concerns remain about the impact on premiums of the proposed 16.7% increase in injury awards," Ms Rock added.
RTÉ News
03-07-2025
- Automotive
- RTÉ News
Cost of settling motor insurance claims increased 23% in the first half of last year
There was a 23% increase in the cost of settling motor insurance claims during the first half of last year compared to the second half of 2023, according to latest figures from the Central Bank's National Claims Information Database (NCID). It shows the cost of motor claims settled between January and June 2024 was €414 million, with the Central Bank attributing the higher cost to an increase in damage claims. Meanwhile, the figures show the number of motor injury claims settled increased by 10% between January and June 2024 compared to the second half of 2023, but remained 20% lower than the 2015-2019 pre-Covid average. For motor injury claims that settled for less than €100,000 in H1 2024, the average compensation cost was down 23% compared to 2020, while the average total cost decreased by 13%. When including all injury claims however, the average total cost is effectively unchanged at €38,553, highlighting the contribution of large injury claims towards total claims costs. In H1 2024, three quarters (75%) of all claims were settled under the Personal Injury Guidelines - this includes 46% of litigated claims. Separately, the NCID shows the total cost of employers' liability and public liability claims fell by 10% to €144 million between the first half of 2024 and the preceding six months (H2 2023). The number of injury claims over the period (which accounted for the vast majority of all public liability claims) remained effectively unchanged at €2,100. In H1 2024, 42% of all employers and public liability injury claims were settled under the Personal Injuries Guidelines (22% of litigated claims). The figures also show that despite a fall in the number of injury claims, legal costs remain elevated. For claims under €100,000, legal fees rose to €7,128 during the first half of 2024, up from €5,512 (2015–2019 pre-Covid average). With regard to litigated claims, legal costs accounted for over 40% of the total claim cost in H1 2024. The rise in the cost of motor insurance claims comes as the Judicial Council's proposed 16.7% increase in the Personal Injuries Guidelines is due to be approved by the Government. Commenting on the NCID figures, the Alliance for Insurance Reform said they "make clear the Government's looming increase in personal injury awards couldn't come at a worse time for policyholders". Tracy Sheridan, owner of Kidspace play centres in Rathfarnham and Rathcoole and an Alliance board member said: "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. We are already seeing month-on-month premium increases as the cost of living continues to spiral out of control. The Government needs to stand up for policyholders, not make things more difficult for them," she added. Regarding the fall in the cost of liability claims, Ms Sheridan said "there really is no excuse for liability premiums not to come down for business, sport, community and voluntary organisations as the cost of claims continues to reduce". Meanwhile, Insurance Ireland - the group representing insurers - said it notes "with growing concern" the "sharp rise in claims costs and the escalating burden of legal expenses". It said "these trends, if left unaddressed, pose a serious risk to the progress made by the Government's action plan for insurance reform for motor insurance for Irish consumers". Insurance Ireland also said "now is not the time to introduce an increase to the Personal Injuries Guidelines". Brokers Ireland also points to what it says are "inflated legal costs". Hazel Rock, Head of Insurance Services at Brokers Ireland, said the guidelines are having a clear cost-reducing effect on employer and public liability claims settled either directly or via the Injuries Resolution Board but that "there is still some way to go before we see the full impact of the measures taken by the Government to date. "While industry reports would suggest more competition is entering the market in areas where it has been limited to date, nonetheless insurance brokers still face the consequences of limited insurer appetite in high risk and niche sectors," she said. "The Injuries Resolution Board is underutilised, with a majority of claims still going to litigation, contributing to inflated legal costs. "Granting greater authority to the IRB and making awards binding in most cases, would help greatly, but concerns remain about the impact on premiums of the proposed 16.7% increase in injury awards," Ms Rock added.
The Irish Sun
08-05-2025
- Automotive
- The Irish Sun
Major warning to thousands of drivers as car insurance sees huge price hike in first half of year
THOUSANDS of Irish drivers have been hit with a warning about rising insurance costs. It's been revealed that the average cost of 3 Thousands of drivers have been given the warning Credit: Getty 3 Insurance costs have risen by 8/8 per cent this year alone Credit: Getty And the same cost has risen by 12 per cent since 2023, according to the new figures. The numbers come from the Central They show that the average insurance premium is now roughly €616. That's almost double the price of the average READ MORE IN MONEY The numbers also reveal that insurance prices have been steadily increasing since 2022. Although costs are about 25 per cent less than they were at their peak in 2017, they have been rising over the past three years. The price hikes have come despite efforts from the Most read in Money They include a dedicated And there have been efforts made to lower payout expenses in personal injury cases. According to the National Claims Information Database, there were 1.2million new motor insurance policies between January and June last year. This accounted for almost €729 million in premiums. The figures also reveal that the number of Those opting for the comprehensive option made up for 93 per cent of all policies in the first half of 2024. This figure is up 80 per cent from 2009. The new NCID and Central Bank figures come at a time when insurance premiums across the board are increasing in price. Just days ago, it was revealed that Irish people are Despite Car insurance has risen by 8.8 per cent while home insurance is up by 6.8 per cent. And the cost of health insurance continues to climb. 3 New figures show more people are opting for comprehensive insurance rather than third party Credit: Getty
