Allianz Ireland has expressed serious concerns about proposals to increase personal injury awards by almost 17%, as outlined in a memo to Cabinet.
The insurer warns that such a move risks reversing the affordability gains achieved through the introduction of the Judicial Council’s Personal Injuries Guidelines in 2021.
Recent figures from the Injuries Resolution Board (IRB) show the median award value in the second half of 2024 was €13,000 — a 29% reduction compared with 2020.
Allianz believes the proposed changes will increase the average award value further, putting upward pressure on motor and liability insurance costs for Irish consumers and businesses.
Soft tissue injuries — commonly referred to as whiplash — account for 46% of all IRB awards from January to June 2024. England and Wales has a fixed tariff system for whiplash and soft tissue injuries, with average payouts substantially lower.
Allianz Ireland is calling for urgent consideration of a fixed tariff approach for soft tissue injuries and a refreshed benchmarking exercise to compare Ireland’s award levels with those in the UK and EU.
‘The current proposal risks undoing the progress made since 2021 in stabilising claims costs and reducing insurance premiums for consumers,’ warned John Ryan, chief underwriting officer of Allianz Ireland. The insurer also raised concerns around the high cost of litigation.
