Business insurance premiums are up despite a fall in settlement costs

The Central Bank’s third Employers’ Liability, Public Liability and Commercial Property Insurance Report based on figures collated by the National Claims Information Database (NCID) was published on 4^th April.  Business Insurance premiums are up despite a fall in settlement costs.  The report outlines that a total of 8,600 claims were settled in 2022 for a total cost of €268 million, down from €276 million the previous year and by nearly a fifth on the 2017 figure of €325 million.  However, the overall average premium for package policies increased by eight percent at the same time.

Minister of State for Financial Services, Jennifer Carroll MacNeill, said the report would not reflect changes made since last year.

“What’s not captured in the Central Bank report is the new duty of care environment since July 2023 following government amendments to the Occupiers’ Liability Act 1995” she said.

“Businesses now know with confidence that the issue of ‘slips, trips and falls’ has been legislated for and the market has become more fairly balanced for all.

“This new environment will help deliver major benefits to businesses in the future when it comes to securing more favourable insurance cover at renewal time”.

She added: “I note the annual change in business insurance for 2022 mirrored the 7.8 percent inflation rate at that time.  As the rate of inflation has since eased, it is my expectation that we will see the same happen in relation to business insurance premiums.”

The chief executive of the Alliance for Insurance Reform, Brian Hanley, said that this week’s Central Bank Figures show that reforms in the insurance sector are not leading to reductions in premiums or great access to cover.  Speaking on RTÉ’s Morning Ireland, Mr Hanley said many businesses are facing significant challenges and it was a “difficult message” for businesses and community groups to accept.

The new Leader of Fine Gael, Simon Harris, said on Wednesday after meeting with his party’s Small Business and Enterprise Council that small businesses and the costs they are facing is an area he plans to focus on while in office.