The Central Bank Reports 7% Decline in Average Car Insurance Premiums in 2022, Welcomed by Alliance for Insurance Reform
The Central Bank has revealed a 7% drop in average car insurance premiums over the past year, marking a positive trend for policyholders. The Alliance for Insurance Reform expressed approval, emphasising the importance of passing on savings to policyholders. Minister of State for Financial Services, Jennifer Carroll MacNeill, highlighted the positive impact on over 2 million policyholders, underscoring the benefits of more affordable motor insurance amidst broader inflationary pressures.
MacNeill cited the Central Bank’s fifth National Claims Information Database (NCID) Private Motor Insurance Report for 2022, noting that the new personal injuries guidelines implemented in 2021 have contributed to the reduction in claims costs. The report indicates that half of all injury claimants settling in 2022 did so under these guidelines, compared to 16% in 2021, signalling their effectiveness.
While acknowledging the positive developments, MacNeill emphasised the persistent challenge of litigation as a key driver of claims costs, pledging direct engagement with industry firms and the Law Society of Ireland. She urged insurers to enhance their risk appetites and reduce prices for various policyholders, extending the benefits of recent government insurance reforms beyond motorists.
The Alliance for Insurance Reform’s CEO, Brian Hanley, welcomed the report but called for further reductions as judicial guidelines continue to influence more cases. Hanley questioned why premium reductions in motor insurance haven’t been mirrored in public or employer liability policies, urging comprehensive reforms benefiting everyone.
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