Central Bank of Ireland publishes Private Motor Insurance Mid-Year Report of the National Claims Information Database

• Report provides key statistics on the private motor insurance industry in Ireland.
• Report captures data up to 30 June 2022.
• Key findings include figures on premium levels, the cost of settling claims, and data on the impact of Personal Injuries Guidelines on average claim costs.

The Central Bank of Ireland has today (25 April 2023) published the first mid-year Private Motor Insurance Report of the National Claims Information Database (NCID).

This report captures data up to 30 June 2022. The aim of the report is to provide updated information on premium amounts, settled claim amounts and analysis on the impact of the Guidelines on average claim costs. 

The key findings published today are:

Cost of Insurance H1 2022:

• Average earned premium per policy was €578 during this period. This represents a decrease of 5% from the average earned premium in 2021.
  

Cost of Settling Claims:

Two effects can be observed in the total settled claim costs and numbers in H1 2022 compared to previous years:

• An increase in the number and cost of damage claims.
• A decrease in the number and cost of injury claims.

Injury Claim Settlements H1 2022:

In terms of settlement channel:

• 48% of claimants settled directly, making up 15% of total costs.
• 13% of claimants settled through PIAB, making up 6% of total costs.
• 39% of claimants settled through litigation, making up 79% of total costs.

Personal Injuries Guidelines H1 2022:

• Overall, for injury claims settled during H1 2022, 43% of claimants settled under the Guidelines. 57% of claimants settled with reference to the Book of Quantum.
• The proportion of injury claims settling under the Guidelines in H1 2022 was:
  • 80% for claimants that settled directly, before engagement with PIAB;
  • 64% for claimants that settled through PIAB;
  • 48% for claimants that settled directly after engagement with PIAB;
  • 3% for claimants that settled through litigation.
• The average cost of claims settled under the Guidelines in H1 2022 was less than the average cost of claims that settled under the Book of Quantum in 2020. This applies to claims settled directly and via PIAB:
  • Claims that settled directly before engagement with PIAB saw a reduction of 47% in average costs;
  • Claims that settled through PIAB saw a reduction of 34%;
  • Claims that settled directly after engagement with PIAB saw a reduction of 38%.

• There have not been enough litigated claims settled under the Guidelines to assess the impact on the average cost of a claim in the litigation channel.

Commenting, Robert Kelly, Director of Economics and Statistics at the Central Bank of Ireland, said, “We are pleased to publish the first mid-year Private Motor Insurance Report of the NCID today, capturing data up to 30 June 2022. The mid-year reports aim to provide more frequent insight into the cost of private motor insurance and the costs associated with settling claims. The reports will also include data on the adoption of the Personal Injuries Guidelines and their effect on the average cost of injury claims.

“Firstly, today’s report shows average private motor premiums have fallen by 5% in the first half of 2022 compared to 2021. We also note two contrasting effects on settled costs compared to previous years, which may reflect the impact of the pandemic and the current inflationary environment. There was an increase in the number and cost of damage claims and a decrease in the number and cost of injury claims.

“We can see from today’s report that 43% of all injury claims settled under the Guidelines in the first half of 2022.  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% of settled injury claim costs in H1 2022 went through this channel. 

“This data will provide significant initial insights for policymakers and stakeholders, complementing the annual Motor Insurance Report, which will be published later this year.”

Notes to Editor

All insurers selling private motor insurance in Ireland were required to submit data to the NCID, regardless of country of authorisation. Firms writing private motor insurance in Ireland are members of the Motor Insurance Bureau of Ireland (MIBI).

Personal Injuries Guidelines were adopted by the Judicial Council on 6 March 2021. Injury compensation awards are calculated with reference to the Guidelines for claims assessed by PIAB or legal proceedings initiated after 24 April 2021. Prior to this date, claims were assessed with reference to the Book of Quantum. This provided data on the range of compensation payments for an assortment of injuries, based on actual figures from court cases, insurance company settlements, State Claims Agency cases, and PIAB data. 

In 2021 and for the six-month period captured in this report, some claimants received compensation awards calculated with reference to the Guidelines and some with reference to the Book of Quantum. It should be noted that for a particular injury type, the compensation awarded with reference to the Guidelines may be different to that awarded using the Book of Quantum. 

The  Personal Injuries Assessment Board (PIAB) is Ireland’s independent state body which assesses personal injury compensation.