Average motor premium per insurance policy up 9% in 2024 

Central Bank said expected cost of claims per policy increased by 3% to €397 in 2024, the highest it has been since 2014

New figures released on Friday show that the average written premium per policy increased by 9% to €623 between 2023 and 2024. 

Total gross written premiums in 2024 for private motor insurance rose to €1.46bn, new figures released by the Central Bank reveal. 

New figures released on Friday show that the average written premium per policy increased by 9% to €623 between 2023 and 2024. 

In addition, the expected cost of claims per policy increased by 3% to €397 in 2024, the highest it has been since 2014, which the regulator said was being driven by damage claims. 

The Central bank said that damage claims cost per policy increased to €192, while injury claims cost per policy remains lower than pre-pandemic levels at €205.

This is the seventh annual Private Motor Insurance Report of the National Claims Information Database, published by the Central Bank. 

Meanwhile, injury claims costs remained stable between 2022 and 2024, compared to €257 for the pre-pandemic 2015-2019 average.

The average cost of smaller injury claims has reduced in recent years, but this has been offset by an increase in the average cost of larger injury claims, the Central Bank said. 

Expected claim costs as a percentage of premiums received was 68% in 2024. In 2024, 93% of policies sold had comprehensive cover, which is consistent with the 2023 findings, the regulator found. 

Across settled claims in 2024, the total grew to was €792m.

Damage claim costs accounted for 54% of total settled claim costs, reflecting an increase from the 29% average observed between 2015 and 2021. 

Overall, damage claims increased by 6%, while the average cost of damage claims increased by 18% compared to 2023.

For injury claims settled in 2024, 48% settled directly with an insurer, with an average time taken to settle of 1.8 years, 16% settled through the Injuries Resolution Board with an average time to settle of 2.7 years and 36% settled through litigation with an average time taken to settle of five years.

For injury claims settling directly or through the Injuries Resolution Board, virtually all claims settled under the Guidelines in 2024, the Central Bank said. 

The average cost of claims settled under the Guidelines in 2024 were 33% lower for claims that settled directly before the Injuries Resolution Board, 8% lower for claims settling through the Injuries Resolution Board and 26% lower for claims settling directly after the Injuries Resolution Board.

Speaking on the data, Robert Kelly, Director of Economics and Statistics at the Central Bank of Ireland, said: “The average written premium has increased by 9% compared to 2023. The data also shows claims costs continue to rise, primarily due to an increase in damage claims. 

"In 2024, damage claims accounted for 54% of settled claim costs, a significant increase from the 29% average observed between 2015 and 2021.

“While there has been an upward trend in the number of claims settled and the associated costs since the covid years, it is important to highlight the total cost of injury claims settled in 2024 was 16% lower than the average from 2015 to 2019, with the total number of injury claims settled being 23% lower," Mr Kelly said. 

"Operating profit was 4% of total income in 2024, down from 8% in 2023 and 12% in 2022. Overall, between 2010 and 2024, operating profit was 5%.”