Alliance for Insurance Reform – Insurance Survey Findings 2025

Today the Alliance for Insurance Reform which the Restaurants Association of Ireland are a proud member of published the findings of a significant survey it undertook with small and medium businesses, sports, community and voluntary groups in respect of their liability insurance cover in recent months. It received a very  substantial 775 responses, and the findings are striking:

• Almost three quarters of respondents have seen their premium rise in the last two years, notwithstanding recent government reforms. It should also be noted that these increases are occurring at a time when the volume of claims is reducing, awards are coming down and insurance companies are making record profits.
• One in five organisations have only one underwriter willing to provide insurance cover. This is a perilous state for them to be in, and we need to see rapid delivery of the government’s commitments to increase competition in the liability insurance market.
• 90% of respondents said they have not benefited from the government’s action plan on insurance reform. The last government undertook an extensive programme of reform, and it must be galling for them to see the benefits of these reforms not being shared with policyholders.
• 67% of policyholders have seen added exclusions, increased excesses or both in recent years.This essentially means people are now paying more and getting less.
• 76% of respondents said they have not had a claim in the past 2 years.
• Four out of five people believed claims were unnecessarily extended by the legal profession to increase their fees. We know from a recent Central Bank report that liability awards are the same on average whether a claimant settles at the Injuries Resolution Board or via litigation. It is therefore astonishing that almost 70% of claims (equating to almost 90% of the overall value of liability claims) continue to be settled in litigation. This is an area that requires much greater examination.
• 95% of respondents did not believe insurers when they said they were passing on savings to customers.
• 93% of respondents said they did not believe it was appropriate or necessary for personal injury awards to be increased at this time. The Minister for Justice is currently poised to recommend a 17% increase in awards to Cabinet in the coming weeks, notwithstanding the fact that awards in Ireland are higher than virtually anywhere else, and he is about to do so in the context of ever rising insurance premiums. It is obvious to everyone what will happen to premiums if this increase goes ahead.

Premium increase will not be limited to businesses, sports and community groups. Motorists will also see their premiums rise sharply in a market where premiums have been on an upward trend for at least 18 months. The Central Bank NCID report for the first half of 2024 showed a sharp rise in motor insurance premiums of 9% in just the first 6 months of last year. CSO data has tracked increases in the cost of car insurance every month since then.

The most recent NCID liability report from the Central Bank published in March 2025 found that premiums increased by 4% in 2023 and have increased by 17% since 2020, despite a range of government reforms. The liability market has also proven highly profitable for insurers, showing an operating profit of 13% in 2023 (2.5 times greater than international norms).

The same NCID liability report showed that average legal costs are less than €1,000 for cases finalised at the Injuries Board but over €23,000 once it enters into litigation, whilst awards for claimants were the same in either channel (also at €23,000). Almost 70% of cases settle in the litigation channel.

If we continually review upwards personal injury awards every three years and it takes two and a half years to settle a claim at the Injuries Board, claimants will simply hold on a few months and bring their case into litigation. Not only will awards increase but legal fees will increase the cost of claims exponentially.

The Alliance for Insurance Reform brings together 47 civic and business organisations from across Ireland, representing over 55,000 members, 700,000 employees, 614,000 volunteers and 374,000 students in highlighting the negative impact of persistently high premiums and calling for real reforms that will quickly reduce liability and motor insurance premiums to affordable levels and keep them that way.

Please see below infographic of the survey findings: