RegSol Blog


Second Motor Insurance Report of the National Claims Information Database Issued

November 2020

The Central Bank of Ireland published on the 3rd of November the second annual Private Motor Insurance Report of the National Claims Information Database (NCID). The Report is being published to improve the overall transparency of the private motor claims environment. As well as providing an analysis of the cost of claims, the cost of premiums, how claims are settled, variance in and components of settlement costs, it is expected that the Report will inform policymaking.

All insures selling private motor insurance in Ireland were required to submit data to the NCID.

Among key points, the Report notes that between 2009 and 2019:

  • The average cost of a claim rose 65% while the frequency of claims fell 45%
  • Cost of claims per policy fell 9% while the average earned premium per policy rose 35%
  • Claims costs were 72% of earned premium between 2009 and 2019
  • 2009 had a loss ratio of 88%; 2019 had a loss ratio of 59%

The new data collected for this report shows us that for claimants who settled injury claims in 2019:

  • 39% settled before Personal Injuries Assessment Board (PIAB)
  • 13% settled directly, after PIAB
  • 14% settled through PIAB
  • 31% settled through litigation, before a court award
  • 2% settled through litigation, with a court award

Of the claimants who settled injury claims through litigation during 2015 to 2019, 85% settled for less than €100K. For these claimants the average compensation was €23,572 and average legal costs were €14,949.

The new data collected for this report shows us that for claimants who settled injury claims in 2019:
  • 39% settled before PIAB
  • 13% settled directly, after PIAB
  • 14% settled through PIAB
  • 31% settled through litigation, before a court award
  • 2% settled through litigation, with a court award
This report lays out the cost of insurance in Ireland for all to see. Those in the industry have laid the root of pricing increases down to an emergent compensation culture, but from the looks of it, the Central Bank is grounding the issue in pricing as the main issue. Overall, premiums are falling, down 9% from the high point in Q2 of 2018:


Click HERE to read the Central Bank Press Release


By Judy de Castro