On 29 September, the IMF published a report which stated that insurance penetration in Ireland is almost three times the EU average and average premiums per capita are four times the EU average. Insurance Ireland responded to the report noting that this statement does not mean insurance premiums are four times the EU average, rather it is the total spend on insurance in the economy by head of population. The figure for Ireland is higher than some countries such as Italy and Germany but is also lower than others, such as the United Kingdom and The Netherlands.
Insurance Ireland welcomes the report, noting the strength of the sector with a total gross written premium of €76 billion, 81.5% of which is insuring risks outside of Ireland, illustrating the strong international dimension. The report also highlights the challenges facing the non-life domestic insurance sector and states “the frequency of claims and increases in average claims costs have impacted underwriting results”. The report also highlights factors such as the increase in court award limits and the overdue review of the Book of Quantum leading to increased legal costs in cases.
A link to the report is here.