Average personal injury awards are down by €10,000 since their inception.
The average personal injuries award has dropped by 10,000 euro since new guidelines were introduced.
The new rules were introduced in April, to clamp down on the soaring cost of claims and rising insurance.
Average awards by the Personal Injuries Assessment Board decreased by 40 per cent in the first five months after they were brought in.
Speaking on the matter, Minister of State with responsibility for Trade Promotion Robert Troy TD said:
“We all know that for too long, the cost and availability of insurance has had a negative impact on our economy and our society. The Personal Injury Guidelines were just one measure brought forward under the Government’s Action Plan for Insurance Reform, and I thank PIAB for this early analysis of awards levels since their introduction in April.
It is evident that the Guidelines are having an impact, with 71% of awards under €15,000 compared to 30% of PIAB awards in 2020. While this progress is welcome, I am committed to progressing a programme of legislative reform in the coming weeks to strengthen PIAB and ensure more personal injury cases can be resolved by PIAB in a faster timeframe and with lower costs."
Minister of State for Financial Services, Credit Unions and Insurance Sean Fleming TD said:
“I welcome the publication of this data by PIAB, it shows the Government’s ambitious reform agenda in the insurance sector is making real progress. This is highlighted by the fact that the average PIAB award is now €14,000 compared to €24,000 before these guidelines.
It’s important that we see the insurance industry meet their public commitments to pass on their reduction in costs to their customers. The new personal injury guidelines have created stability for the insurance industry, and this is making Ireland a more attractive place to sell insurance.
We have identified a number of key business sectors that need more insurance competition and I am working closely with the IDA to attract new insurance operators into the Irish market.”