CAR INSURANCE PRICES felly by 5% between 2021 and 2022, according to a new report, following the introduction of new guidelines for settling claims outside of court.

The first-ever Private Motor Insurance Mid-Year Report of the National Claims Information Database (NCID) said that the average premium in the first half of last year was €578, a decrease of 5% from 2021.

Some 39% of claimants settled through litigation in the first half of 2022. Their cases represented 79% of the total costs for that period. Just under half of all claimants (48%) settled directly, making up 15% of total costs.

The remaining claimants (13%) settled through the Personal Injury Assessment Board (PIAB), representing 6% of total costs for the period.

The report said that two effects could be observed from the claim costs compared to previous years: An increase in the number and cost of damage claims and a decrease in the number and cost of injury claims.

Two years ago, new guidelines were adopted aimed at reducing the level of awards in personal injury cases.

The Judicial Council’s Personal Injuries Guidelines Committee’s guidelines to replace the guidance in the Book of Quantum – which was previously used to give an approximate level of damages for injuries – include a catalogue of injuries, ranging from major to minor. The guidelines set out the level of damages that may be awarded or assessed for various injuries.

The report was published by the Central Bank of Ireland.

In a statement, Robert Kelly, the Director of Economics and Statistics at the Central Bank, said: “For claims settled directly and via PIAB in H1 2022, the average cost of claims was lower for those settled under the Guidelines, compared with those settled under the Book of Quantum.

“There have not yet been enough litigated claims settled under the guidelines to determine the impact on the average cost of a claim in this channel,” Kelly said. “This is important to note as 79% of settled injury claim costs in H1 2022 went through this channel.”

All insurers selling private motor insurance in Ireland were required to submit data for the report. It is hoped the report will improve transparency in the insurance sector and promote data-based policy outcomes.