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The Minister of State with special responsibility for Financial Services, Credit Unions and Insurance, Seán Fleming, welcomes today (Tuesday 15 November) the publication of the fourth National Claims Information Database (NCID) Private Motor Insurance Report.
Minister of State at the Department of Finance, Seán Fleming, stated:
“I would like to thank the Central Bank for this report. Transparency remains the best way to hold insurers to account over the cost and availability of insurance.
"I have been clear with the insurance industry that the government expects all cost savings made as a result of the government’s insurance reforms be passed on to consumers – the NCID will allow us to monitor this going forward.
"This is the first report to include data on the impact of the Personal Injuries Guidelines. It shows a 34% reduction in the compensation cost of claims settled under the Guidelines versus the previous Book of Quantum. The cost of claims is the single largest contributor to insurance premiums.
"I also note the CSO published their latest Consumer Price Index for October, which highlighted the downward trend in motor premium prices – down 10.5% on 2021.
"The data from the Central Bank remains consistent with previous reports, and shows the importance of ensuring more claims settle at the Personal Injuries Assessment Board (PIAB) stage. The NICD data shows that PIAB settlements are faster, have substantially lower legal costs and similar award levels, as to those claims settled by litigation. This is why the government is prioritising the Personal Injuries Resolution Board Bill 2022 in the Oireachtas, which is a principal action under our Action Plan for Insurance Reform.
"From next year, the NCID will publish some data more regularly on a biannual basis – including premium and settlement data for private motor insurance.”
The Minister of State notes that it is important to have a financially stable and profitable insurance sector to attract new providers. The Minister is hopeful that the level of volatility in profits and losses will not continue and thereby bring stability to the cost of premiums in the Irish market.
He also notes it is now more important than ever that firms provide cover to sectors currently experiencing shortages in other areas of cover such as in smaller business sectors, and pass savings being made to their customers.
The Central Bank of Ireland has today (Tuesday 15 November 2022) published the fourth annual Private Motor Insurance Report of the National Claims Information Database (NCID). The NCID compiles aggregate data received from insurers. This allows the Central Bank to publish an annual report containing analysis on the cost of premiums, the cost of claims, the aggregated financial performance of firms providing this insurance, and key settlement channel information. The NCID is intended to facilitate a more in-depth analysis of annual trends in insurance claims. This was seen as key to developing an understanding of how claims costs are impacting premiums, in particular understanding the relationship between the price paid by a customer for motor insurance and the cost to insurance undertakings. Increased data availability also allows insurance firms to plan for costs into the future, which in turn should provide stability in relation to premium prices, and benefit consumers.
This fourth Private Motor Insurance Report of the NCID captures data for the calendar year 2021. Some data on the impact of the Personal Injuries Guidelines – which came into effect in April 2021 – is included in the report.
Separately, last week, CSO published their latest Consumer Price Index for October, which highlighted the downward trajectory in motor premium prices – down 10.5 per cent on 2021 and down over 40 per cent from their peak in 2016.