Injuries Board Savings: €76m in Avoidable Costs
Insurance Savings Not Reaching Policyholders Despite Falling Claims, Report Finds
The Injuries Resolution board (IRB) 2024 report reveals notable savings generated through reduced litigation and claim volumes, yet these benefits are not being passed on to insurance policyholders, according to the Alliance for Insurance Reform.Meanwhile, a potential increase in personal injury awards threatens to reverse recent progress and drive up premiums further.
IRB Report Highlights Declining Claims & Increased Efficiency
IRB Chief Executive Rosalind carroll highlighted the board’s expanded services, including mediation and the Garda Compensation Scheme, as key drivers in resolving a greater number of claims efficiently. “The enhancement and expansion of our services… increases our potential to resolve a greater number of claims and demonstrates the difference we can make to individuals who have suffered an injury through no fault of thier own, and at the same time bring with this savings on both time and costs,” she stated.
The IRB continues to offer a non-adversarial alternative to litigation, successfully resolving claims for two decades. Notably, claim volumes for personal injury are 33% lower than in 2019. specifically, public liability claims have remained stable, with no increase in 2024, and employer liability claims have decreased by 5%. motor claims have also seen a significant drop, decreasing by 30% as 2019.
Despite these positive trends and demonstrable savings, the Alliance for Insurance Reform argues that insurance companies are prioritizing profits over policyholders.”These facts alone warrant meaningful and sustained reductions in insurance premiums, but instead we continue to see insurance companies prioritise profits over their policyholders,” said Alliance board member Ivan Cooper.
The Alliance points to the continued increase in liability premiums for businesses,sports clubs,community groups,and voluntary organizations as unjustified,given the falling claim volumes and associated cost savings.
Government Considers Controversial Increase to Injury Guidelines
The IRB report arrives as the Government weighs a recommendation from the Judicial Council to increase personal injury guidelines by nearly 17%. This potential increase is fiercely opposed by the Alliance, insurers, and the National Competitiveness and Productivity Council.The Alliance warns that approving the increase would “guarantee the cost of insurance goes up even further,” effectively negating the savings achieved through the IRB’s work. They urge the Government to reconsider, particularly in light of already rising premiums.
Concerns from Insurers and Government Officials
Insurers have echoed the Alliance’s concerns, and the National Competitiveness and Productivity Council has also advised against the increase.
Minister for Justice Jim O’Callaghan is reportedly “acutely aware of the impact that any such amendments to increase damages for personal injuries will have on insurance premiums, competitiveness and the business community.” A spokesperson for the Minister emphasized the need to balance increased awards with the effective operation of the IRB and the benefits of the Personal Injuries Resolution Board established under the Judicial Council Act 2019,which has contributed to reductions in damages.
Cabinet is expected to make a final decision on the proposed increase in the coming weeks.
Read more: NCPC urges rethink on personal injury awards increase
