- Growing concern at sustained increase in the cost of motor insurance with no end in sight.
- Cost of repairs driving premiums upwards, but inflation cannot be allowed to become a blank cheque given recent insurance reforms.
- Litigation channel accounts for one third of claims settled but more than two thirds of the overall cost of settling all claims – we need more cases settling at the Injuries Resolution Board.
Today the Central Bank of Ireland published the NCID Annual Private Motor Report 2024 on motor insurance cover. It found that premiums had increased by 9% in the previous 12 months; largely driven by the continuing rise in the cost of vehicle repairs.
Commenting on today’s report, Alliance for Insurance Reform Board member Ivan Cooper said: “such a significant increase in premiums is directly contributing to the cost-of-living crisis people are experiencing.”
“Notwithstanding the increasing cost of vehicle repairs, injury claims account for more than half of the overall cost of settling motor claims, and we urgently need to see more claims settling at the Injuries Resolution Board. Since 2021 all subsequent claims are assessed using the Personal Injury Guidelines, so there is no loss to claimants in resolving their claims in that channel over the more expensive litigation one. Whilst the litigation channel accounts for one third of claims settled, it accounts for more than two thirds of the cost of settling all claims.”
Ivan Cooper also said: “there doesn’t appear to be an end in sight in terms of premium increases, and we will soon get to a point where people simply can’t afford it. Repair‑cost inflation is real but must not become a blank cheque. The government needs to ensure it is doing all it can to address this challenge.”
