On 15 September, Insurance Ireland held a briefing to discuss the issues contributing to the increase in premia, especially for motor insurance. Insurance Ireland also proposed a range of measures to address increases in the cost of claims. Costs are on the rise because of (i) the increasing costs of court awards, (ii) the legal costs associated with the Personal Injuries Assessment Board and (iii) insurance fraud (€200m per annum). The future impact of the Setanta judgment was also mentioned.
Insurance Ireland proposed a high level set of measures which it believes could control the cost of premiums. These suggestions are: providing additional support to An Garda Siochana and the Road Safety Authority to ensure that they can adequately monitor the increased level of motor activity; reducing awards to victims to a level “which society can afford”; reducing legal costs; addressing the common issues which can result in the rejection of an Injuries Board award by requiring certain documentation to be provided at the outset of the Injuries Board process; deterring fraudulent claims by a method other than suspended sentence. It also suggests clearly defining the responsibilities of the MIBI and the Insurance Compensation Fund by amending the legislation to ensure that the latter is responsible for the insolvency of insurers.
A link to the briefing is here.