It is “unjust and unacceptable” that insurance companies are not passing on savings to policyholders at a time when the cost of settling injury claims is falling due to Government reforms, the Alliance for Insurance Reform said on Friday.
The body was commenting on the latest figures from the Central Bank’s National Claims Information Database (NCID), which show that the cost of settling employers’ and public liability claims was €9 million, or 6 per cent, lower than the pre-Covid average in the first six months of last year.
The average compensation cost was down 17 per cent compared with 2020 for claims under €150,000.
The decrease likely reflects the impact of the personal injury guidelines published in 2021, which replaced the book of quantum.
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However, the date also reveals that the cost of settling those claims was up 3 per cent year-on-year, while the volume of claims increased 1 per cent.
Insurance Ireland, the representative body for the industry in the Republic, said that while the number of claims being settled through the Injuries Resolution Board continues to rise, too many claims are still being settled through court cases.
“The NCID report shows that claims settled through the Injuries Board made up 15 per cent of claimants in the first half of 2025, up from 12 per cent in 2024,” said Insurance Ireland chief executive Moyagh Murdock.
“While this increase is welcome, there are still far too many claims being settled through expensive litigation, with no discernible advantage to the claimants.
“Claimants who chose to go the litigated route have to wait a lot longer, on average over 3.5 additional years, for the same level of compensation they would have received from the Injuries Resolution Board process.”
She said greater use of the board will be important in helping to manage overall claims costs.
However, the Alliance for Insurance Reform has said Government reforms are clearly working to drive down costs, but that the savings are still not being passed on to policyholders.
The failure to pass on savings to customers is “unjust and unacceptable”, it said.
“Claims volumes are down, claim costs are down, and compensation levels for the great majority of claims have reduced,” said Lucy Medlycott, Alliance board member and executive director of the Irish Street Arts, Circus and Spectacle Network.
“Policyholders are entitled to expect that those savings would be reflected in the cost of insurance. Instead, insurers continue to make very strong profits while businesses, sports clubs, community organisations and voluntary groups remain under real pressure. At a time of significant economic strain, that is unjust and unacceptable.”
Brokers Ireland, the representative body for the brokerage industry, said the number of claims being settled through the resolution board needs to increase substantially.
“The more this happens, the greater the impact in lowering the cost of insurance and improving the speed and fairness of outcomes,” said Hazel Rock, head of insurance services at Brokers Ireland.
Separate figures from the NCID published late last month revealed that motor insurance premiums rose by an average of 4 per cent in the first six months of 2025.
While injury claims costs were down, the total cost of damage claims jumped by 8 per cent in the first six months of 2025 compared to the same period in 2024, due largely to a sharp rise in repairs costs.
