The Alliance for Insurance Reform welcomes the publication by the Central Bank of the 1st Mid-Year NCID Employers’ and Public Liability Insurance Report.
- Alliance welcomes publication of the NCID Liability Insurance Report
- With the cost of settlements down 12% insurers cannot continue to delay premium reductions and increases would be unconscionable
- Legal fees per case are increasing across all channels with a 57% increase for claims settled directly, 17% increase for those settled through PIAB and 9% for the cases that are settled through litigation
- Legal fees account for almost 38% of settlement costs in 86% of cases – a cost that goes directly to the cost of insurance.
Commenting on the release of the report, Michael Magner, owner of the Vienna Woods Hotel in Cork and board member of the Alliance for Insurance Reform said: ‘the data contained in this report allows for a meaningful analysis of the liability insurance sector in Ireland as the Judicial Guidelines take effect. This is critical as liability insurance premiums are all too often a crippling cost for small businesses, voluntary and community groups, sports and cultural organisations and charities.’
He continued: ‘The total cost of settling liability claims is down by 12% due to a reduction in the volume of settled claims and the average cost of settling them. Importantly, it appears that insurers are sticking to the Judicial Guidelines in terms of direct settlements. In light of these reductions there is a compelling argument to pass on savings to liability policy holders without any further delay and any premium increases would simply be unconscionable.’
The Alliance calls on the Minister for Finance Michael McGrath and the Minister of State Jennifer Carroll MacNeill (who holds particular responsibility for insurance) to ‘hold insurers feet to the fire’ on this and deliver the long overdue premium reductions.
The NCID figures also reveal that legal fees account for 38% of the total cost of litigated personal injury settlements in Ireland – a cost that goes directly to the cost of insurance.[1] The report also indicates that legal fees per case are increasing across all channels since 2020 with a 57% increase for claims settled directly, 17% increase for those settled through PIAB and 9% for cases settled through litigation (the majority of cases).[2] Alliance Board member Michael Magner called on the Minister for Justice ‘to expedite the ongoing review of legal fees[3] and take all necessary steps to ensure a meaningful and sustainable reduction in legal fees.’
- See Table 11, p. 20 of the NCID report.
- See Table 11, p. 20 of the NCID report.
- https://www.rte.ie/news/business/2023/0601/1386761-insurance-campaigners-seek-overdue-report-on-legal-fees/
Justice Plan 2022, p.28
Notes:
Source: 1st Mid-Year NCID Employers’ and Public Liability Insurance Report, Central Bank, Table 11, p. 20