New data from the Central Bank’s National Claims Information Database (NCID) reveals a 23% rise in the cost of settling motor insurance claims in the first half of 2024 compared to the previous six months.
In total, the cost of settling motor claims between January and June 2024 amounted to €414 million. The Central Bank linked this increase to higher damage claims.
Motor Injury Claims Increase, But Still Below Pre-Covid Levels
The number of motor injury claims settled also rose by 10% in the first half of 2024 compared to the second half of 2023. However, the number remains 20% lower than the average from 2015 to 2019, before the pandemic.
For injury claims settled for less than €100,000 in the first half of 2024, the average compensation dropped by 23% compared to 2020. The total cost for these claims also saw a decrease of 13%.
When factoring in all injury claims, however, the average cost remained stable at €38,553, suggesting that large injury claims still make up a significant portion of total claims costs.
Personal Injury Guidelines Dominating Settlements
The data shows that 75% of all claims in the first half of 2024 were settled under the Personal Injury Guidelines. This includes 46% of litigated claims.
Liability Claims Show Decrease in Costs
The cost of employers’ liability and public liability claims decreased by 10%, totaling €144 million in the first half of 2024. This is compared to the second half of 2023.
The number of injury claims in this category remained steady at around 2,100.
Legal Fees Continue to Rise
Despite a decrease in the number of injury claims, legal costs continue to climb. For claims under €100,000, legal fees averaged €7,128 in the first half of 2024, up from €5,512 during the pre-Covid period (2015-2019).
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