Aviva Insurance Ireland said today that it paid out €223m in claims to its general insurance customers and third-party claimants in 2022, an increase of just over 10% on the previous year.
Aviva said the increase in claims costs last year was driven by a number of factors.
These included a number of claims for property damage after a number of large fire losses and the impact of inflation on the cost of materials and labour.
Claims caused by break-ins and theft rose by 43% on the previous year, which Aviva said may have reflected an increase in properties vacant during the day following the return to work post the pandemic.
On the motor side, Aviva said there was an 18% increase in the volume of motor damage claims, with values also growing by 13%.
It said this was as a result of a return to higher volumes of traffic post-Covid but also due to inflation in the cost of vehicle parts and labour, delays in obtaining parts and the stressed second-hand car market.
Motor insurance premiums were down 9% last year and 40% from the peak prices in 2016, it noted.
But the total amount spent on injury claims reduced by 2.4% last year on 2021. Aviva said this was due to the fact that the majority of payments related to claims pursued through the courts system which had accident dates before April 2021 when the new injury guidelines were introduced.
Aviva said it has invested significant resources - both human and financial - to stem the growth in the level and frequency of fraudulent claims it sees in the system.
"This includes a network of some 50 colleagues with relevant experience who are contracted to work with us on investigating cases as well as experienced claims handlers dedicated to identifying and fighting fraud," the company said.
"Our policy in this regard is that, where we suspect or have determined that a claim is fraudulent, we will fight that claim, up to and including in the courts," it added.
Brian O'Connor, Chief Claims Officer at Aviva, said the value of any general insurance policy, whether it covers an individual or their properties, including their homes, business, or motor, only becomes apparent to customers when they need to make a claim.
"There has been increased focus on insurance companies in the ongoing debate on the need to reduce the cost of personal injury claims and the degree to which insurers are focused on their customers genuine needs," Mr O'Connor said.
"From an insurers' perspective, each claim provides us with an opportunity to provide an excellent service to our customers when they need us most. We have a team of professionals who work hard to make this process as straightforward as we can for our customers," he added.
