Business insurance premiums up despite fall in settlement costs

Business insurance premiums up despite fall in settlement costs

Business insurance premiums rose by eight per cent in 2022 despite a slight decline in the total cost of settlements, according to a new Central Bank report.

The Central Bank today published the third Employers’ Liability, Public Liability and Commercial Property Insurance Report based on figures collated by the National Claims Information Database (NCID).

A total of 8,600 claims were settled in 2022 for a total cost of €268 million, down from €276 million the previous year and by nearly a fifth on the 2017 figure of €325 million.

At the same time, the overall average premium for package policies increased by eight per cent.

Jennifer Carroll MacNeill, the minister of state for financial services, credit unions and insurance, said the report would not reflect changes made since last year.

“What’s not captured in the Central Bank report is the new duty of care environment since July 2023 following government amendments to the Occupiers’ Liability Act 1995,” she said.

“Businesses now know with confidence that the issue of ‘slips, trips and falls’ has been legislated for and the market has become more fairly balanced for all.

“This new environment will help deliver major benefits to businesses in the future when it comes to securing more favourable insurance cover at renewal time.”

She added: “I note the annual change in business insurance for 2022 mirrored the 7.8 per cent inflation rate at that time. As the rate of inflation has since eased, it is my expectation that we will see the same happen in relation to business insurance premiums.”

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