The Central Bank of Ireland published its annual National Claims Information Database report on private motor insurance and accompanying research on how insurers use premiums. Average premiums rose in 2025 compared with the previous year, but declined in the final two quarters. Central Statistics Office data showed average premium prices continuing to decrease into 2026. Claims payouts accounted for 60% of premiums in 2025, making them insurers’ largest cost. Operating expenses absorbed 22%, broker commissions 8% and reinsurance costs 3%. Premium income exceeded underwriting expenses by 4%, while profit before interest and tax, including other income, was 7%. The findings linked declining injury claim numbers and average compensation levels to the personal injury guidelines, contributing to market stabilisation. However, most injury claims costs continued to be settled through litigation, even though average compensation through the Injuries Resolution Board was comparable for claims below EUR 100,000. The vast majority of damage claims and associated costs were settled directly.
Central Bank of Ireland reports higher motor insurance premiums in 2025 despite declines toward year end
The Central Bank of Ireland’s annual private motor insurance report found that average premiums rose in 2025 but declined in the final two quarters, with separate official data showing decreases continuing into 2026. Claims absorbed 60% of premiums, while profit before interest and tax was 7%. Injury claim numbers and average compensation declined, but litigation still accounted for most injury claims costs despite comparable average compensation through the Injuries Resolution Board for claims below EUR 100,000.