Legal costs to settle insurance claims rising despite reductions in compensation

Employers’ and public liability insurance fees are going up despite fewer claims and award amounts falling

Junior minister for insurance Jennifer Carroll MacNeill encouraged people to settle claims through the Personal Injuries Assessment Board as it is quicker and keeps costs down. Photo:Gareth Chaney/Collins

Legal costs associated with settling employers’ and public liability insurance claims are rising despite reductions in the number of claims and amount of compensation being awarded, new analysis from the Central Bank shows.

In its latest National Claims Information Database analysis, published on Thursday, the Central Bank compared the average injury claim cost between 2015 and 2019 with the average injury cost claim for the first six months of 2022. It found a 25% reduction in the total number of claims and a 12% reduction in the total cost of those claims.