Motor insurance premiums down five per cent after personal injury guidelines
Motor insurance premiums fell by five per cent in the year following the introduction of personal injury guidelines which slashed compensation payouts.
The average earned premium per policy was €578 during the first six months of 2022, according to the first mid-year private motor insurance report of the National Claims Information Database (NCID).
The Central Bank said there was an increase in the number and cost of damage claims and a decrease in the number and cost of injury claims over the period.
Of settled injury claims, 48 per cent were settled directly, making up 15 per cent of total costs; 13 per cent were settled through PIAB, making up six per cent of total costs; and 39 per cent of claimants settled through litigation, making up 79 per cent of total costs.
For injury claims settled during the period, 43 per cent of claimants settled under the new guidelines while 57 per cent settled with reference to the Book of Quantum.
Robert Kelly, director of economics and statistics at the Central Bank, said: “For claims settled directly and via PIAB in H1 2022, the average cost of claims was lower for those settled under the guidelines, compared with those settled under the Book of Quantum.
“There have not yet been enough litigated claims settled under the guidelines to determine the impact on the average cost of a claim in this channel. This is important to note as 79 per cent of settled injury claim costs in H1 2022 went through this channel.”