Irish Insurers Pay 50% More Than UK for Injury Claims, Legal Costs Rising

Irish insurers pay 50% more than their UK counterparts for third-party injury claims on motor policies, despite recent reductions in award sizes, according to a report published Tuesday by the Society of Actuaries in Ireland. Legal costs in Ireland are also rising compared to the UK.

Noel Garvey, chairman of the Society of Actuaries’ working group, stated that Irish insurers pay approximately €70 more per motor policy on average due to higher injury claim costs. The report, which includes data from 12 UK insurers and Ireland’s National Claims Information Database, found that while injury award levels in the Republic have fallen 29% since 2021 (from €18,422 in 2020 to €13,000 in late 2024), average costs per policy for third-party injury claims remained consistently higher in Ireland between 2015 and 2024.

In 2024, the cost-per-policy for third-party injury claims was €205 in Ireland versus €135 in the UK. For claims under €100,000, the average settlement cost per claim in Ireland was €23,200, compared to €9,600 in the UK for claims under €311,000. This 2.4-times difference is driven by 2.6-times higher compensation and 2.8-times higher legal fees in Ireland. The relative difference in legal fees has increased from 2.5 times in 2018 to 2.8 times in 2024, highlighting legal costs as a key driver.

Awards in Ireland for injuries with a three-month recovery period are 523% greater than in England and Wales. For two-year recovery periods, Irish awards are 82.5% higher (€9,000 vs. €4,932 equivalent). The UK introduced a whiplash tariff system in 2021, which sets fixed payments and has coincided with a significant drop in motor injury claim frequency. Garvey noted that while award levels are a significant component, claims frequency, legal costs, fraud controls, and market competition also influence insurance premiums.