NCID Liability Report 2024
In December 2025 the Alliance secured another important objective with the publication of the Central Bank’s NCID Liability Insurance Annual Report for 2024. It is vital these detailed, independent reports are published within 12 months of year-end so politicians and other key stakeholders remain focused on the continued upward trajectory of premiums, despite reductions in claim volumes and awards and outsized insurer profitability.
Key findings from the NCID liability report include:
- Legal fees are now effectively matching compensation awards in the majority of claims settled.
- Despite awards being virtually the same for claimants whether they settle at the Injuries Resolution Board (IRB) or via litigation, 71% of cases still resolve through litigation, where legal fees significantly increase the overall cost of settling claims.
- Despite reductions in claim volumes and award levels in recent years, the average premium for liability policies rose by a further 4% in the year, contributing to a 23% increase in premiums since 2020.
- The liability insurance market was very profitable for insurers in 2024, with an operating profit after tax of 10% of total income.
Judicial Council (Amendment) Bill 2026
In January, the Minister for Justice published the Judicial Council (Amendment) Bill 2026, proposing amendments to how personal injury award levels will be reviewed and amended in future. Alliance members undertook a significant advocacy programme last year to stop the proposed 16.7% increase in personal injury awards being introduced. The Alliance made a series of recommendations regarding future reviews, many of which are included in the Bill.
The Bill has much to commend it, not least:
- extending the Guidelines review period from 3 to 5 years;
- greater involvement by the IRB; and
- strengthened international benchmarking of awards.
Although further clarity is needed, it is also welcome to see provision for Government to return any proposed future increases to the Judicial Council for reconsideration. Beyond that, the Alliance would like to see the Oireachtas Finance Committee required to consider any proposed changes in awards prior to Government taking a decision. There also remains ongoing concern about the suitability of the judiciary effectively determining award levels and then implementing them. The Alliance met with Minister Troy in early February to discuss the Bill.
Sectors that cannot get cover
The Alliance has met Minister Troy and his officials on a number of occasions in recent months to advocate for meaningful and sustainable solutions for sectors still unable to access cover, or only able to access cover at unaffordable prices. We have asked the Minister to examine whether IPB would be a suitable vehicle to provide cover in a number of discrete areas.
Insurance webinars and member resources
In January, more than 220 Alliance member organisations signed up for our webinar on managing health and safety in the workplace. Further webinars will be held over the coming months. In response to this high level of interest and engagement, the Alliance intends to build a new member resources section on its website.
Motor Insurance Transparency Code
At his request, the Alliance provided Minister Robert Troy with a short paper setting out practical changes to the draft Motor Insurance Transparency Code so it gives motorists clear, usable information and makes it easier to compare quotes and switch insurer.
A central recommendation was that insurers must clearly state the vehicle value used at renewal, so motorists can spot “valuation mismatches” and avoid paying for “phantom cover” above the insurer’s likely maximum payout. The Code is due to be published in the coming weeks.
Noteworthy media reports and court judgments
In a recent judgment, High Court judge Mr Justice Micheál P O’Higgins awarded €170,000 to a woman injured by a van and said that, while the 2021 Personal Injuries Guidelines remain the applicable law, he had taken account “in a very general sense” of the Judicial Council’s proposed 16.7% increase and of inflation since March 2021. Although the individual heads of damage were still within the 2021 guideline ranges, he said he was pitching values towards the top end because the body responsible for the guidelines has indicated they are now, to an extent, out of date.
Speaking to the Irish Independent, Alliance member ISME said the judgment is concerning because it appears to embed an upward adjustment based on proposals that have not been sanctioned by Government and argued the Judicial Council Act does not provide for increasing general damages purely on the basis of inflation. ISME called on the Oireachtas to provide legislative certainty around personal injuries awards, pointing to IRB/Deloitte analysis that found Irish awards are 3.9 to 4.9 times higher than those in England and Wales and arguing there is no case for increases, but rather a case for substantial reductions through legislative action.
