On 11 May, the Department of Finance published the Second Motor Insurance Key Information Report (Report) of the Cost of Insurance Working Group, which aims to increase the level of transparency of the insurance sector in advance of the National Claims Information Database. The Report provides a factual, comprehensive and independent analysis of the Irish motor claims market between 2011 and 2016. Key finding include:
- Total claims costs per policy, for all claims types, based on projected ultimate costs, increased by approximately 2.7% per year, or 14% over the period from 2011 to 2016. These costs include both the general and special damages elements of compensation as well as associated costs such as legal, medical and other fees;
- Driving this increase is the ultimate costs associated with third party injury claims, which represent 77% of the proportion of total ultimate claim cost per policy in 2016, as increase from 68% in 2011;
- The proportion of total ultimate claim cost per policy arising from non-injury claims (except Windscreen claims) was 29% in 2011, falling to 21% in 2016; and
- The frequency of third party injury claims in Ireland is lower than in the UK but that the costs associated with those claims, including compensation, legal and other costs, are significantly higher than the same costs in the UK.
The Department of Finance's Report is here.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.