Average motor insurance premium down by 7% to €568 last year

The Central Bank report also showed that 91% of motor policies had comprehensive cover, up significantly from 84% in 2019. 

Business campaigners have welcomed a Central Bank report confirming a sharp drop in motor insurance premiums, but said they will continue to press their case for significant reductions in business and public liability insurance. 

The Central Bank's latest Private Motor Insurance Report showed the average cost of motor insurance fell by 7% to €568 in 2022 from the previous year, even though claims had rebounded to pre-pandemic levels, while the insurers generated total premiums of €1.3bn. 

“The data released today show that premiums continued to fall in 2022. Claims costs have increased, returning to pre-covid levels, but driven by an increase in the cost of damage claims. The sector however remained profitable in 2022 earning a 12% profit," said Robert Kelly, director of economics and statistics at the Central Bank. 

The figures were keenly anticipated and come after the implementation of new guidelines for personal injury claims which had long campaigned for by business groups. 

Brian Hanley, the head of the business campaigning group, the Alliance for Insurance Reform, said he welcomed the sharp fall in motor premiums, and hoped that the judicial reforms would continue to suppress insurance costs and premiums, "notwithstanding period of delays or inflation". 

"The other takeaway is that businesses do not understand why the premium falls have been led by motor policy reductions. Businesses are wondering why cuts are possible in motor costs, but they are not hearing of significant cuts in business or public liability costs," Mr Hanley said. 

The Central Bank report also showed that 91% of motor policies had comprehensive cover, up significantly from 84% in 2019. 

The insurers hailed the report as showing the reforms were working and predicted further benefits would flow through.

"We have yet to see the full impact of some of the reforms feeding through, for example, the Personal Injuries Guidelines will take time to feed through to the litigation system, as will the strengthening of Personal Injuries Resolution Board's powers and the recently implemented changes to the Duty of Care," said Moyagh Murdock, chief executive of business group, Insurance Ireland. 

Last week, the Personal Injuries Assessment Board said the number and value of claims dealt with by the board in 2022 had slid in the first year since the introduction of new guidelines which were designed to lower the costs of insurance claims and premiums.