Insurers made a €176 million profit from motor insurance last year – equating to 13 per cent of €1.35 billion of gross earned premiums, even as the frequency of claims rose as there was more activity on the State’s roads following pandemic lockdowns. Both the profit and ratio for 2021 were the highest for a full year since at least 2009, the year to which the NCID data goes back.
While the introduction of the new personal injury award guidelines by the Judicial Council was expected to see a decline in the number of cases essentially bypassing the Personal Injuries Assessment Board and resorting to the courts, the proportion of claims settled through litigation rose to 35 per cent last year, from 34 per cent in 2020, according to the figures. PIAB-settled claims declined by 1 percentage point to 15 per cent.
The fourth Central Bank report on NCID motor figures underscores, again, how claimants opting for litigation in most cases gain little financially and lose time. The average award for litigated cases where claims were for less than €100,000 – 94 per cent of claimants – was €24,856 in 2015-2020. However, the average for a PIAB settlement was €21,856. The average for cases settled directly with insurers was €13,933. The average litigated case took 3.