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Press release

Minister Carroll MacNeill welcomes further Motor Insurance Premium drop for consumers

Jennifer Carroll MacNeill, the Minister of State with special responsibility for Financial Services, Credit Unions and Insurance, today (Tuesday 25 April) welcomed the publication of the National Claims Information Database (NCID) Private Motor Insurance Mid-Year Report.

Minister Carroll MacNeill said:

“It is evident that, notwithstanding the inflationary environment, this further 5% drop in motor insurance premiums in Ireland in the first six months of 2022 shows the actions of Government in tackling the cost of insurance continues to benefit consumers. To this period, motorists have now benefited from an average saving of €135 per policy since premium highs of €710 at the end of 2017.

"I am conscious that this price reduction benefitting private motor policyholders comes against the backdrop of the current global inflationary environment, which may impact in particular on damage repairs. There has been a substantial reduction in the cost of personal injury claims and this must remain our focus. I will continue to engage with all stakeholders in the insurance sector and work on the outstanding matters which most effect the cost of insurance for motorists, home owners and businesses. It is important we can get to a point where consumers can have access to consistent and affordable price expectations across the country.”

The Report also reinforces separate findings from the PIAB regarding the Personal Injuries Guidelines, with data showing reductions of approximately between a third to a half in the cost of claims, compared to those settled under the previous Book of Quantum. This relates to claims settled either directly or through the PIAB, as the full impact of the Guidelines on litigated claims has yet to be seen.

In addition, the Report highlights the benefits of the PIAB, with data once again showing it to be the most cost effective and efficient channel for settling claims.

Finally, the Report indicates that the share of motorists with comprehensive cover has increased to 90 per cent, up from around 80 per cent in 2018. Minister Carroll MacNeill commented:

“As premiums reduced, the level of protection for private motorists has improved, which is also to be strongly welcomed."

Notes

The Central Bank of Ireland has today (Tuesday, 25 April 2023) published the first Mid-Year Private Motor Insurance Report of the National Claims Information Database (NCID). The NCID is a repository that stores information on the cost of non-life insurance claims. The Central Bank of Ireland is responsible for collecting the information and managing the NCID under the Central Bank (National Claims Information Database) Act 2018.

The purpose of the NCID is to improve transparency around the cost of settling claims, and the impact this has on the cost of insurance. It achieves this by storing claims data at a greater level of detail than in the past. This enables better analysis and improved decision-making in relation to the cost of insurance.

This latest Private Motor Insurance Report is the first mid-year report produced by the NCID, with a view to providing certain data on a more frequent basis. It contains data on premiums and settled claims trends for the period up to 30 June 2022, including information on claims settled under the Personal Injuries Guidelines. The complete annual Private Motor Report for 2022 will be published later this year.

Key findings

The average earned premium per policy decreased by 5% from 2021, to €578 in H1 2022.

Total settled claims in H1 2022 was approximately 67,000 (6% injury claims; 94% damage claims).

The total cost of settled claims was €278 million (55 % related to injury claim costs; 45% related to damage claim costs).

Two offsetting effects can be observed in the total settled claim costs and numbers in H1 2022: an increase in the number and cost of damage claims, and a decrease in the number and cost of injury claims.

Injury claim settlements H1 2022

For claimants who settled injury claims in H1 2022:

  • 48% settled through the direct channel, accounting for 15% of injury claims costs
  • 13% settled through PIAB, accounting for 6% of injury claims costs
  • 39% settled through litigation, accounting for 79% of injury claims costs

The average length of time to settle an injury claim was:

  • 1.8 years through the direct channel
  • 2.7 years through PIAB
  • 4.8 years through litigation

For 94% of claimants, the total cost of a claim was less than €100,000:

  • for direct settlements, average compensation was €10,489, and average legal costs were €2,401
  • for PIAB settlements, average compensation was €15,665, and average legal costs were €1,156
  • for litigated settlements, average compensation was €22,473, and average legal costs were €17,813

Personal Injuries Guidelines

For injury claims settled in H1 2022, 43% settled under the Guidelines, as follows:

  • 80% of claims that settled direct before PIAB
  • 64% of claimants that settled through PIAB
  • 48% of claimants that settled direct after PIAB
  • 3% of claimants that settled through litigation

For claims settled under the Guidelines, vs the Book of Quantum in 2020, there was:

  • a 47% reduction in average claim cost for claims settled directly before PIAB
  • a 34% reduction in average claim cost for claims settled through PIAB
  • a 38% reduction in average claim cost for claims settled directly after PIAB

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