Latest news with #TracySheridan
Irish Independent
03-07-2025
- Automotive
- Irish Independent
‘The Government needs to stand up for policyholders' – backlash as motor insurance premiums to keep rising
There was a big jump in the number of claims in the first half of last year and increased costs of repairing vehicles, a report from the Central Bank shows. Drivers have seen motor insurance premiums rise for more than a year-and-a-half, with premiums up by more than 8pc in the year to May alone. Now the Alliance for Insurance Reform says the increase in claims would push premiums even higher. This is because the Central Bank said the cost of settling claims was 23pc higher in the first half of last year when compared with the previous six months. 'This is primarily driven by an increasing trend in both the number and cost of damage claims,' the Central Bank's H1 2024 Private Motor and Liability Mid-Year Reports show. When compared with pre-Covid times, the cost of settling injury claims is down 16pc. This was driven by a fall in the number of claims settled. The fact that the cost of settling motor damage claims shot up by 23pc in six months meant there was no justification to increase the official guidelines on award levels further, the Alliance said. T he cost of settling motor claims went up 23pc in just six months The Judicial Council has proposed that personal injury award guidelines should be increased by almost 17pc. Justice Minister Jim O'Callaghan is to bring a memo to the Cabinet next Tuesday, paving the way for draft legislation that would give effect to a planned rise in award levels. The Alliance said: 'T he cost of settling motor claims went up 23pc in just six months – now is not the time to increase these costs further.' The Central Bank report also shows that there is no financial benefit for claimants to have their case taken away from the State's Injuries Resolution Board. Injuries claims can be litigated if a settlement from the board is rejected. The Central Bank's report found that the average award paid by the board and one that is litigated both come in at €24,000. Legal fees for cases settled through the Injuries Board average €597. Litigated cases have average legal costs of €24,786. The Alliance said this needs to be specifically addressed in the Government's forthcoming action plan for insurance reform. Alliance board member Tracy Sheridan said: 'The increase in awards will raise premiums further and adversely impact the volume of claims settled at the Injuries Resolution Board. We are already seeing month-on-month premium increases 'The Government has not said a word about the planned increase [in the award guidelines] for the last six months and there has been no opportunity for public debate either. This is wrong.' Ms Sheridan said that if the Government increases award guideline levels by 17pc, there will be no check on costs. 'We are already seeing month-on-month premium increases as the cost of living continues to spiral out of control. 'The Government needs to stand up for policyholders, not make things more difficult for them,' she said. The Central Bank also released a report on business liability insurance, showing claims were down 10pc in the first half of last year compared with the previous half year.
RTÉ News
03-07-2025
- Automotive
- RTÉ News
Cost of settling motor insurance claims increased 23% in the first half of 2024
There was a 23% increase in the cost of settling motor insurance claims during the first half of last year compared to the second half of 2023, according to latest figures from the Central Bank's National Claims Information Database (NCID). It shows the cost of motor claims settled between January and June 2024 was €414 million, with the Central Bank attributing the higher cost to an increase in damage claims. Meanwhile, the figures show the number of motor injury claims settled increased by 10% between January and June 2024 compared to the second half of 2023, but remained 20% lower than the 2015-2019 pre-Covid average. For motor injury claims that settled for less than €100,000 in H1 2024, the average compensation cost was down 23% compared to 2020, while the average total cost decreased by 13%. When including all injury claims however, the average total cost is effectively unchanged at €38,553, highlighting the contribution of large injury claims towards total claims costs. In H1 2024, three quarters (75%) of all claims were settled under the Personal Injury Guidelines - this includes 46% of litigated claims. Separately, the NCID shows the total cost of employers' liability and public liability claims fell by 10% to €144 million between the first half of 2024 and the preceding six months (H2 2023). The number of injury claims over the period (which accounted for the vast majority of all public liability claims) remained effectively unchanged at €2,100. In H1 2024, 42% of all employers and public liability injury claims were settled under the Personal Injuries Guidelines (22% of litigated claims). The figures also show that despite a fall in the number of injury claims, legal costs remain elevated. For claims under €100,000, legal fees rose to €7,128 during the first half of 2024, up from €5,512 (2015–2019 pre-Covid average). With regard to litigated claims, legal costs accounted for over 40% of the total claim cost in H1 2024. The rise in the cost of motor insurance claims comes as the Judicial Council's proposed 16.7% increase in the Personal Injuries Guidelines is due to be approved by the Government. Commenting on the NCID figures, the Alliance for Insurance Reform said they "make clear the Government's looming increase in personal injury awards couldn't come at a worse time for policyholders". Tracy Sheridan, owner of Kidspace play centres in Rathfarnham and Rathcoole and an Alliance board member said: "The only bright spot had been the reduction in the cost of injury awards and now the Government is set to increase these by (almost) 17%. "If this happens there will be no check on costs. We are already seeing month-on-month premium increases as the cost of living continues to spiral out of control. The Government needs to stand up for policyholders, not make things more difficult for them," she added. Regarding the fall in the cost of liability claims, Ms Sheridan said "there really is no excuse for liability premiums not to come down for business, sport, community and voluntary organisations as the cost of claims continues to reduce". Meanwhile, Insurance Ireland - the group representing insurers - said it notes "with growing concern" the "sharp rise in claims costs and the escalating burden of legal expenses". It said "these trends, if left unaddressed, pose a serious risk to the progress made by the Government's action plan for insurance reform for motor insurance for Irish consumers". Insurance Ireland also said "now is not the time to introduce an increase to the Personal Injuries Guidelines". Brokers Ireland also points to what it says are "inflated legal costs". Hazel Rock, Head of Insurance Services at Brokers Ireland, said the guidelines are having a clear cost-reducing effect on employer and public liability claims settled either directly or via the Injuries Resolution Board but that "there is still some way to go before we see the full impact of the measures taken by the Government to date. "While industry reports would suggest more competition is entering the market in areas where it has been limited to date, nonetheless insurance brokers still face the consequences of limited insurer appetite in high risk and niche sectors," she said. "The Injuries Resolution Board is underutilised, with a majority of claims still going to litigation, contributing to inflated legal costs. "Granting greater authority to the IRB and making awards binding in most cases, would help greatly, but concerns remain about the impact on premiums of the proposed 16.7% increase in injury awards," Ms Rock added.
Irish Independent
03-07-2025
- Automotive
- Irish Independent
‘The Government needs to stand up for policyholders' – backlash as motor insurance premiums to keep rising due to surge in claims
There was a big jump in the number of claims in the first half of last year and increased costs of repairing vehicles, a report from the Central Bank shows. Drivers have seen motor insurance premiums rise for more than a year-and-a-half, with premiums up by more than 8pc in the year to May alone. Now the Alliance for Insurance Reform says the increase in claims would push premiums even higher. This is because the Central Bank said the cost of settling claims was 23pc higher in the first half of last year when compared with the previous six months. 'This is primarily driven by an increasing trend in both the number and cost of damage claims,' the Central Bank's H1 2024 Private Motor and Liability Mid-Year Reports show. When compared with pre-Covid times, the cost of settling injury claims is down 16pc. This was driven by a fall in the number of claims settled. The fact that the cost of settling motor damage claims shot up by 23pc in six months meant there was no justification to increase the official guidelines on award levels further, the Alliance said. T he cost of settling motor claims went up 23pc in just six months The Judicial Council has proposed that personal injury award guidelines should be increased by almost 17pc. Justice Minister Jim O'Callaghan is to bring a memo to the Cabinet next Tuesday, paving the way for draft legislation that would give effect to a planned rise in award levels. The Alliance said: 'T he cost of settling motor claims went up 23pc in just six months – now is not the time to increase these costs further.' The Central Bank report also shows that there is no financial benefit for claimants to have their case taken away from the State's Injuries Resolution Board. Injuries claims can be litigated if a settlement from the board is rejected. The Central Bank's report found that the average award paid by the board and one that is litigated both come in at €24,000. Legal fees for cases settled through the Injuries Board average €597. Litigated cases have average legal costs of €24,786. The Alliance said this needs to be specifically addressed in the Government's forthcoming action plan for insurance reform. Alliance board member Tracy Sheridan said: 'The increase in awards will raise premiums further and adversely impact the volume of claims settled at the Injuries Resolution Board. We are already seeing month-on-month premium increases 'The Government has not said a word about the planned increase [in the award guidelines] for the last six months and there has been no opportunity for public debate either. This is wrong.' Ms Sheridan said that if the Government increases award guideline levels by 17pc, there will be no check on costs. 'We are already seeing month-on-month premium increases as the cost of living continues to spiral out of control. 'The Government needs to stand up for policyholders, not make things more difficult for them,' she said. The Central Bank also released a report on business liability insurance, showing claims were down 10pc in the first half of last year compared with the previous half year.
RTÉ News
03-07-2025
- Automotive
- RTÉ News
Cost of settling motor insurance claims increased 23% in the first half of last year
There was a 23% increase in the cost of settling motor insurance claims during the first half of last year compared to the second half of 2023, according to latest figures from the Central Bank's National Claims Information Database (NCID). It shows the cost of motor claims settled between January and June 2024 was €414 million, with the Central Bank attributing the higher cost to an increase in damage claims. Meanwhile, the figures show the number of motor injury claims settled increased by 10% between January and June 2024 compared to the second half of 2023, but remained 20% lower than the 2015-2019 pre-Covid average. For motor injury claims that settled for less than €100,000 in H1 2024, the average compensation cost was down 23% compared to 2020, while the average total cost decreased by 13%. When including all injury claims however, the average total cost is effectively unchanged at €38,553, highlighting the contribution of large injury claims towards total claims costs. In H1 2024, three quarters (75%) of all claims were settled under the Personal Injury Guidelines - this includes 46% of litigated claims. Separately, the NCID shows the total cost of employers' liability and public liability claims fell by 10% to €144 million between the first half of 2024 and the preceding six months (H2 2023). The number of injury claims over the period (which accounted for the vast majority of all public liability claims) remained effectively unchanged at €2,100. In H1 2024, 42% of all employers and public liability injury claims were settled under the Personal Injuries Guidelines (22% of litigated claims). The figures also show that despite a fall in the number of injury claims, legal costs remain elevated. For claims under €100,000, legal fees rose to €7,128 during the first half of 2024, up from €5,512 (2015–2019 pre-Covid average). With regard to litigated claims, legal costs accounted for over 40% of the total claim cost in H1 2024. The rise in the cost of motor insurance claims comes as the Judicial Council's proposed 16.7% increase in the Personal Injuries Guidelines is due to be approved by the Government. Commenting on the NCID figures, the Alliance for Insurance Reform said they "make clear the Government's looming increase in personal injury awards couldn't come at a worse time for policyholders". Tracy Sheridan, owner of Kidspace play centres in Rathfarnham and Rathcoole and an Alliance board member said: "The only bright spot had been the reduction in the cost of injury awards and now the Government is set to increase these by (almost) 17%. "If this happens there will be no check on costs. We are already seeing month-on-month premium increases as the cost of living continues to spiral out of control. The Government needs to stand up for policyholders, not make things more difficult for them," she added. Regarding the fall in the cost of liability claims, Ms Sheridan said "there really is no excuse for liability premiums not to come down for business, sport, community and voluntary organisations as the cost of claims continues to reduce". Meanwhile, Insurance Ireland - the group representing insurers - said it notes "with growing concern" the "sharp rise in claims costs and the escalating burden of legal expenses". It said "these trends, if left unaddressed, pose a serious risk to the progress made by the Government's action plan for insurance reform for motor insurance for Irish consumers". Insurance Ireland also said "now is not the time to introduce an increase to the Personal Injuries Guidelines". Brokers Ireland also points to what it says are "inflated legal costs". Hazel Rock, Head of Insurance Services at Brokers Ireland, said the guidelines are having a clear cost-reducing effect on employer and public liability claims settled either directly or via the Injuries Resolution Board but that "there is still some way to go before we see the full impact of the measures taken by the Government to date. "While industry reports would suggest more competition is entering the market in areas where it has been limited to date, nonetheless insurance brokers still face the consequences of limited insurer appetite in high risk and niche sectors," she said. "The Injuries Resolution Board is underutilised, with a majority of claims still going to litigation, contributing to inflated legal costs. "Granting greater authority to the IRB and making awards binding in most cases, would help greatly, but concerns remain about the impact on premiums of the proposed 16.7% increase in injury awards," Ms Rock added.
