Yep, we missed this one from Ireland last week – good news for insurers as PI payouts fall by 40% in Ireland.
Insurance Ireland welcomes the announcement from PIAB which stated that the value of average awards for Personal Injuries made by PIAB has fallen by 40% from last year’s levels, following the introduction of new Judicial Council Guidelines in April. Insurance Ireland and our members continue to strongly support the new Guidelines and the Action Plan for Insurance Reform and believe that a more stable sector, delivered through Government reform, will reduce market volatility and bring more certainty for customers and insurers alike.
“Pricing is a matter for individual companies and competition law prohibits us from commenting on future pricing in the market, however the National Claims Information Database (NCID) Private Motor Report of November 2020 shows that the average premium fell 9% from Q2 2018 to Q4 2019 and the CSO motor index shows that there has been a further 13% reduction since then. The last time Ireland introduced major reform with the establishment of Personal Injuries Assessment Board (PIAB) in 2004, insurers responded positively and consumers benefitted,” said Moyagh Murdock, CEO, Insurance Ireland.
“The insurance sector fully supports the Government’s Action Plan for Insurance Reform and believes that the new Judicial Guidelines on Personal Injuries is a key element of delivering that reform and helping to create an environment that is less volatile and can deliver more consistent outcomes for customers. It is now approximately six months since the introduction of the new Judicial Guidelines, and as such, are still in a transition phase with many cases still going through the courts. However, while the PIAB rejection rate remains high at 60%, we believe the figures announced today are very encouraging. Insurance Ireland is prohibited from commenting on future pricing, but we believe that meaningful reductions in award levels will lead to decreased volatility and increased competition in the market over time.”
“it is good to see the downward trend in motor insurance, but there are other areas of the market that remain very challenging, particularly Public Liability and Employer’s Liability insurance. It is essential that the other measures in the Action Plan for Insurance Reform are progressed in order to address these issues, such as the strengthening of the powers of PIAB, the rebalancing of the duty of care between business and the citizen, and increasing competition in the market. It is particularly crucial that we see a strengthening of PIAB’s ability to settle cases so that fewer claims go to the Courts, where the legal costs add so much to the overall cost of settling claims.” said Moyagh Murdock.