Motor claims costs rise 10 percent as premiums increase 4 percent
Irish motor insurance claims cost €424 per policy in 2025, up 10 percent, while average written premiums rose 4 percent to €655. The Central Bank of Ireland's October 2026 report links cost pressures to damage claims and larger injury claims.
Damage costs reach new highs
Average written premiums eased in the final two quarters of 2025, ending at €650. Premium data covered 97 percent of the market; claims estimates covered 94 percent.
Estimated ultimate claims totalled €978 million across 207,000 claims.
Damage costs per policy reached €197, while injury costs were €228. Average damage claims rose 6 percent to €2,316; average injury claims rose 14 percent to €45,645. Inflation raised damage costs, while injury claim frequency remained below pre-pandemic levels.
Claims above €250,000 accounted for 44 percent of injury costs, versus around 30 percent before COVID-19. Separately, settlements totalled €753 million across 157,000 claims, including €403 million for compensated damage claims.
Legal fees offset compensation savings
Personal Injuries Guidelines applied to 88 percent of injury settlements in 2025 and 73 percent of litigated claims.
For litigated claims with compensation below €100,000 settling within six years, compensation was 22 percent below comparable 2020 Book of Quantum settlements, but total costs fell only 4 percent.
Legal fees represented 49 percent of costs for litigated claims totalling below €100,000, versus 16 percent directly and 4 percent through the Injuries Resolution Board.
Settlement took 4.7, 1.7 and 2.6 years respectively.
Reserve releases support profits
Insurers earned 7 percent of income before interest and tax and 5 percent after tax.
Prior-year reserve releases contributed 3 percent of income, while the current-year combined operating ratio was 99.1 percent gross and net of reinsurance.
Only 2 percent of estimated 2025 injury costs had been paid by year-end.