Key new insights from the infographic include:
- Compensation accounts for 42% of the total cost of insurance premia – by far the biggest component
- Lawyers are the massive winners when a case goes to court so policyholders do not gain from threatening to go to court
- Insurers have been the big winners from the current crisis as claims costs held steady but premiums shot up by 42%
“The figures make it clear that compensation payments are at the heart of our problem,” said Linda Murray, Director of the Alliance and owner of Huckleberry’s Den play centre in Navan, “Damages are by far the biggest component of insurance premiums and are a facilitator for every other element including solicitor’s fees, insurer profitability and brokers’ commissions.
“General damages for minor fully-recovered injuries must be dramatically reduced. Responsibility for this task is currently with the Personal Injuries Guidelines Committee of the Judicial Council and the Committee is supposed to present draft guidelines to the Board of the Judicial Council by the 28th October. “These guidelines are intended to replace the current Book of Quantum. We have installed a countdown clock on the Alliance’s website, counting down to that date and we very much look forward to seeing the judiciary reflect the common good in their deliberations. Policyholders cannot wait any longer. We expect general damages for minor injuries to be dramatically reduced along the lines of the Fair Book of Quantum published by ISME.”
Peter Boland, Director of the Alliance added, “The analysis in this infographic is intended to add clarity to a crisis that has lacked many real data insights up to now.
“The lack of clarity has suited attempts by insurers and solicitors to muddy the waters as they fight to protect their massive profits. The analysis was made possible by the publication of the Central Bank’s National Claims Information Database on Private Motor Insurance and we’re grateful to the Central Bank for this. But the Central Bank now needs to publish equivalent liability insurance data without any further delay. Insurance reform cannot be directed or measured without data.”