The average cost of settling public and employer liability claims through the Injuries Resolution Board dropped by a third in 2022 compared to 2020, according to a new report.
However, average insurance premiums increased by 8% in 2022.
The data is in the latest National Claims Information Database (NCID), published by the Central Bank.
New personal injuries guidelines were published by the Judicial Council in 2021 to replace the Book of Quantum, which had been used as a guide for settling injury claims.
The guidelines are used by the Injuries Resolutions Board - formerly PIAB - and the courts to provide consistency in the level of personal injury awards in successful personal injury claims.
However, the bulk of injury claims - 76% - settled in 2022 were done so with reference to the Book of Quantum, the report shows, with the remaining 24% settled under the new guidelines.
The report shows that the average level of compensation through the Injuries Resolution Board mechanism in 2022 ranged from €21,439 for Public Liability to €26,366 for Employer Liability claims.
Legal costs for the board route varied from €1,804 to €1,459 respectively.
The average compensation awarded for a litigated settlement in 2022 ranged from €37,045 for a Public Liability claim to €70,297 for an Employer Liability.
However, legal costs in the litigation route varied from €28,542 in a Public Liability claim to €40,013 in the case of an Employer Liability claim, accounting for the bulk of the award.
"The work of the Board is important for all of us - in society and in business - and provides annual savings to the economy of tens of millions of euros by avoiding the need for expensive and lengthy litigation in personal injury claims," Minister Dara Calleary said on the report's publication.
Dara Calleary also said there have been a number of engagements with Insurance Ireland around passing the benefit of that risk profile on, but he added that there was a sense that premium reductions have not been passed on.
Speaking on RTÉ's Morning Ireland, he said they were engaging with Insurance Ireland and looking at the cause of that, and they would continue to focus on reducing the cost of insurance for everyone in Ireland.
Mr Calleary also advised those needing to make a claim that they would get it resolved within two and a half years with the Injuries Resolution Board at a much lower cost.
"People want a settlement fairly and as low cost as possible," he said. "The Injuries Resolution Board is the way to go."
Mr Calleary said there needs to be greater transparency around the number of cases settled by insurance companies before going to court.
He said he regularly hears from businesses who are told that a case has been settled by way of an increased premium, which he said needs to stop.
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"We want the insurance companies to be more robust in the settlement process and more transparent with their clients," he stated.
Mr Calleary said the Government was "absolutely focused on holding feet to the fire across all sectors" to reduce insurance costs.
"Using the Board more means that we can achieve quicker outcomes for anyone with an injury, but with a much lower cost overall," Minister Jennifer Carroll MacNeill pointed out.
"These costs - in particular higher legal costs arising from litigation – are passed on to all consumers in the form of increased premium prices," she added.
Insurance Ireland said it was "disappointing" to see a continued high level of claims going the litigated route.
"Because of the scale of this, the impact of Personal Injuries Guidelines has yet to be felt," Moyagh Murdock, CEO of Insurance Ireland, said.
"However, we can see the positive impact on claims settled through both the Injuries Resolution Board route and direct with insurers," she added.
The report also highlights an 8% rise in the overall average premium for 'Package policies' for Public and Employer Liability insurance in 2022.
While representing an increase, it was largely in line with the rate of inflation in that year.
The vast majority - 86% - of EL, PL and Commercial Property insurance policies were taken out via package policies, the report notes.
"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," Minister Carrol MacNeill said.
Head of Insurance with Brokers Ireland Hazel Rock pointed out that Employers and Public Liability Insurances have been among the most challenged areas of insurance in Ireland for businesses and community enterprises.
"The area has lacked competition for some time now with several providers exiting the market," she said.
"This has resulted in many enterprises and community and sporting providers finding it difficult to acquire insurance at all in some cases or get cover at what could be considered a reasonable outlay but Insurance Brokers continue to work with such groups to find innovative solutions to address this lack of competition," Ms Rock added.
She said the outcome a Supreme Court ruling on the challenge to the constitutionality of the Personal Injuries Guidelines was awaited, as well as the full impact of the recently introduced duty of care legislation rebalancing responsibility more fairly between businesses, clubs and community groups and those who use their services.
The chief executive of the Alliance for Insurance Reform, Brian Hanley, said today's Central Bank figures show that reforms in the insurance sector are not leading to reductions in premiums or greater 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.
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"The size of the effort to reform the insurance industry is reflective of the size of the problem that it and other areas contribute to the cost of doing business," he said.
He said one of the things we need to see is greater competition in the insurance market, particularly in the liability sectors key.
"While the Government's office to promote competition has had some success in attracting new underwriters for motor insurance - and we can see the benefits of that, broadly speaking, in our premiums - in the three to four years it has been in place we haven't seen any new underwriters for liability," he stated.
"Many organisations and many sectors are dependent on a single insurer," he added.
Mr Hanley said that while there was no aversion to some profit being made, it was reasonable to ask that some of the benefits and savings made were passed on to business owners.
The Irish Hotels Federation pointed to the hospitality sector, which it says has hit been particularly hard by premium increases, with accommodation and food service businesses seeing a 24% increase in insurance costs between 2020 and 2022.
IHF President Michael Magner said this was in addition to significant increases in previous years as well as ongoing increases in the cost of business.
"Despite insurance reforms introduced by the Government, businesses on the ground have yet to see any tangible benefits in relation to their premiums. Much more needs to be done to ensure savings are passed on," he said.
"This must go hand-in-hand with a renewed effort by Government to attract additional insurance providers into the market."
