Insurance Ireland welcomes the publication of PIAB’s third report since the introduction of the new Personal Injuries Guidelines in 2021, which shows that during the six months from January to June 2022, the average award under the new guidelines has decreased by 38%. Insurance Ireland also welcomes the fact that the PIAB acceptance rate has increased to 48%, having fallen to only 36% in the aftermath of the introduction of the new Guidelines.
“The reduction of awards is very welcome,” said Moyagh Murdock, Chief Executive of Insurance Ireland, “While it is also welcome to see the acceptance rate of PIAB settlements increase to 48%, we would like to see this figure continue to increase, as it is the most efficient and cost effective way of resolving claims. The Central Bank’s NCID report has consistently shown that the compensation awards are broadly the same for claimants whether pursued through PIAB or through litigation however, the litigated route takes significantly longer and costs are vastly greater.”
While competition law prevents us from commenting on future pricing in the market, we are optimistic for the future of insurance in Ireland. The last time Ireland got to grips with costs with the establishment of PIAB in 2004, insurers responded positively and consumers benefitted. Motor insurance premiums have been trending downwards in recent years, figures from the CSO issued in October showed that motor insurance prices are down by over 10% in the year to September 2022, and are down by 43% since July 2016.
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 in delivering that reform and in helping to create an environment that is less volatile and one which can deliver more consistent outcomes for customers.
While very good progress has been made, it is essential that the other measures in the Action Plan for Insurance Reform continue to be progressed. These measures include the strengthening of the powers of PIAB, which is underway through the publication in August of the Personal Injuries Resolution Board Bill 2022, and the rebalancing of the duty of care and increased competition in the market.” said Moyagh Murdock.