06 Jul Average public injury award decreased by 50%
Average public injury award decreased by 50%
The first implementation report of the Action Plan for Insurance Reform
6 July 2021
The Government has published the first implementation report of the Action Plan for Insurance Reform. The report contains preliminary data from the Personal Injuries Assessment Board suggesting that the average award has decreased by approximately 50% with 78% of awards being €15,000 or lower, as compared to some 30% last year.
The Action Plan, which was launched by the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD, aims to make the insurance industry more competitive and consumer friendly and to reduce the costs for motorists, homeowners, businesses, community and sporting groups.
Speaking at the launch, Mr. Varadkar said “It’s early days, but there are signs that personal injury awards are falling – by around 50%. This is as a direct result of the new Personal Injuries Guidelines. We expect this dramatic drop to be reflected in premiums over the next year and we will be following this up with insurance companies.”
The Tánaiste said the 50% reduction in compensations paid by the PIAB will not be matched by a 50% fall in premiums but there will be “a recognisable reduction” in the cost of those premiums.
The Action Plan for Insurance Reform published in December 2020 sets out 66 actions across Government with a view to making Ireland’s insurance sector more competitive and consumer-friendly, supporting enterprise and job creation. According to the Department of Enterprise, Trade and Employment, implementation of the plan is on track with 34 actions already completed and a further 21 actions due to be completed this year.
Alliance for Insurance Reform
Speaking about the report, Peter Boland from the Alliance for Insurance Reform said that while he welcomes the report, the “real test is what happens next” and that the alliance would have expected to see premiums dropping from the 24 April but “there is no evidence that is happening so far”.
Mr. Boland added that it was “extraordinary” how businesses and voluntary community groups have managed to keep going despite the cost of insurance.