The Central bank of Ireland recently collated and published its Private Motor Insurance Report of the National Claims Information Database for 2022.
The report focused on the impact of the Personal Injury Guidelines that were implemented in Ireland on 24 April 2021. The main objective of these guidelines was to bring consistency to awards for personal injury claims, with the hope that many claims would be settled by the Personal Injury Assessment Board (PIAB) rather than going through the lengthy and expensive litigation process.
According to the data from the NCID, half of all personal injury claims related to motor accidents were settled under the new guidelines in 2022. This marks a significant increase from the previous year, where only 16% of claims were settled under the guidelines. The report also noted that overall claims costs increased in 2022, returning to pre-COVID levels. However, it was observed that damage-only claims costs have seen a notable increase due to various factors.
As a result of further engagement with the guidelines and the PIAB, the average cost for claims has declined by 47% since 2020 before PIAB involvement and 32% for those settled through the PIAB.
This demonstrates the positive impact of implementing these guidelines and utilizing the services of the PIAB in streamlining the claims process and reducing costs for all parties involved.
While it may take some time before the next report is released, it is anticipated that the 2023 figures will show further improvements and cost savings for insurers. This could potentially lead to a reduction in motor insurance premiums for consumers, as was seen in 2022. However, it is important to note that the current market remains volatile, with long repair periods and an increase in the cost of spare parts contributing to recent premium hikes.
While there have been positive developments in personal injury claims management in Ireland, challenges still exist within the insurance market. It will be crucial for stakeholders to continue monitoring and adapting to these changes in order to ensure fair and efficient outcomes for all parties involved.