Central Bank Insurance Report Highlights High Cost Of Litigation – Brokers Ireland

Press Release

Thursday 20th March 2025

Insurance Brokers Report Improvements in Capacity and Risk Appetite Among Domestic Insurers

Commenting on today’s Central Bank National Claims Information Database report on employer and public liability and commercial property insurance, Brokers Ireland said what emerges starkly from the report is the very high cost of litigation compared with the level of compensation received.

Hazel Rock, Head of Insurance Services at Brokers Ireland, pointed to litigated settlements for under €150,000 which made up 81% of litigated employer liability settlements and 94% of public liability litigated settlements.

“In the former the average award compensation was €33,631 but legal costs amounted to €26,087, and in the latter average compensation was €23,803 with average costs consuming most of the award at €23,261.”

She said clearly the Personal Injuries Guidelines are having a major impact on average injury claims costs for employer and public liability, reducing the level of awards which had been seriously out of line with international norms. It’s not yet clear of the impact on the litigated route here since not enough claims have been settled via this channel.

And she said the Duty of Care legislation introduced in mid-2023 is an important piece of legislation rebalancing duty of care owed to visitors by business owners/occupiers and recreational outlets.

“This is a critical piece of legislation that can be expected to cut down on or prevent discreditable and exaggerated claims but it is likely to be some time yet before we see the actual impact of it, especially since many of these claims, 71% of injury claims according to today’s report, go the litigation route,” she said.

The prior situation certainly impacted the lack of provision in the employer and public liability markets in particular.  Ms Rock said this has been the most challenged area of the market in terms of the level of provision of cover.

“Our members are reporting significant improvements in terms of capacity and risk appetite among domestic insurers and new entrants mostly in the form of Managing General Agents,” she said. “More than in previous years, the domestic market is taking on new and diverse risks resulting in more business staying in the domestic economy.”

Meanwhile, she said, insurance brokers would continue to work with businesses and other enterprises “to achieve cover for them where they are having difficulty and to achieve best value for them at all times.”

Ends

Further information:         Hazel Rock, Head of Insurance at Brokers Ireland  Tel. 086-8834516

Mairéad Foley, Foley Ryan Communications                                                      Tel. 086-2556764