- Personal Injuries Guidelines having real impact on cost of claims
- PIAB a better model for the public interest
- ‘Duty of Care’ legal change will be important
- Engagement with insurance CEOs on new business insurance regime
- Minister meeting businesses and brokers to hear direct experiences
Jennifer Carroll MacNeill TD, the Minister of State for Financial Services, Credit Unions and Insurance, has today welcomed the publication by the Central Bank of Ireland of the National Claims Information Database (NCID) Employers’ Liability (EL) and Public Liability (PL) Mid-Year Data Release.
Minister Carroll MacNeill said:
“I welcome the publication of this Report on Employers’ and Public Liability claims, as it provides important insights into issues impacting businesses and community organisations throughout the country.
This report shows that that the Personal Injuries Guidelines developed by the judiciary are having a significant impact on claims settled, which is good for the public interest in driving down the costs that we all bear from over expensive insurance practices. Using the PIAB as opposed to litigation, means that we can achieve quicker outcomes for anyone with an injury, but with a much lower cost overall. Let’s face it – these costs are inevitably passed on in the form of increased premium prices so we should have a collective objective of driving down the cost of settling injury claims and make sure the money is there for people who need it, rather than an expensive process putting up costs for everyone. The PIAB is quicker and cheaper than litigation and a better model for the public interest.
Driving unnecessary litigation out of the claims settlement process reduces costs for everyone – reduces direct insurance costs for businesses and therefore drives down prices for consumers. As Minster, I am committed to doing everything I can to highlight the value to people in Ireland of the PIAB process – lower insurance costs benefit us all.
The report provides a highly encouraging update regarding the emerging impact of the Personal Injuries Guidelines on claims settled either directly or through the Personal Injuries Assessment Board (PIAB).
Minister Carroll MacNeill added:
“This report shows two important findings:
1. That the Guidelines are clearly taking hold with reductions of approximately between a third to a half in the cost of these claims, compared to those settled under the Book of Quantum. Of course the impact of the Guidelines has yet to fully pass through on litigated claims, which can take up to five years to settle. As these older ‘grandfathered’ claims wash through the system, the full benefits of the Guidelines should start to be seen in the litigated channel, which accounts for the vast majority of liability claims costs.
2. That liability claims settled by litigation cost more and take longer to settle than those settled through the PIAB. This has been a consistent finding across successive NCID reports, and has enabled Government to develop targeted legislation to enhance and strengthen the PIAB, with a view to increasing settlements through this channel.
This Report reinforces the importance of all stakeholders fully embracing and implementing the Government’s reform agenda, particularly the landmark Personal Injuries Guidelines. I look forward to the publication of the full annual liability EL/PL report by the NCID later this year, which will include premium data, and should provide further key insights.”
Duty of Care
Minister Carroll MacNeill said:
“Furthermore, the recently enacted legislation to reform the ‘duty of care’ is expected to significantly impact claims in this sector, especially the issue of ‘slips, trips and falls’. This in turn should generate benefits for businesses, as well as the many individuals, community, sporting and voluntary groups that make such valuable contributions to society.
I have written to the CEOs of the major insurance companies in Ireland and I will meet them to discuss their plans to reflect this legal change in the premiums they offer to the business community in Ireland. I am also meeting international insurance firms who have no legacy issues under the old legal regime to hear about their plans to expand into the Irish EL/PL space over the coming period. This will help drive much needed competition in the marketplace.
Last week I met businesses and insurance brokers in Galway and Mayo to hear their challenges of getting insurance, or getting insurance at competitive rates. I want to continue to engage with businesses all over the country to hear about what insurers are saying to them about their upcoming premium reviews after this important legal change has been made. In the meantime, I will be focusing entirely on driving unnecessary litigation out of the settlement process as far as I can and making the PIAB really work for the people of Ireland”.
The NCID has proven to be a robust source of independent and verified data, and Government will continue to use future reports to monitor the impact of this and the many other reforms delivered through the Action Plan for Insurance Reform.
