The Alliance for Insurance Reform has strongly criticised insurers for not cutting premiums in the face of falling claims and awards.
CEO Brian Hanley told the Oireachtas Finance Committee that insurance reforms have been delivered at scale, but despite this, premiums continue to rise.
"According to the Injuries Resolution Board, claims volumes fell by 40% between 2019 and 2023. Median awards are down by around a third. Yet the Central Bank reports liability premiums increased by 17% between 2020 and 2023," he said.
"Insurers reported profits of 13% in 2023 alone – more than double international norms."
He said that according to a survey of its own members, 74% faced premium increases in the last two years while only 14% saw reductions.
Labour's Ged Nash said the insurance sector was "utterly shameless".
"There is no justification for this level of profit," he added.
Members also heard criticism of legal costs during litigation.
Mr Hanley said that two-thirds of liability claims are still settled through litigation, even though the average awards for claimants are broadly the same whether they settle at the Injuries Resolution Board or through the courts.
He said that the only major difference was cost - with average legal fees under €1,000 via the Board, but over €23,000 through litigation.
"These often-unnecessary legal costs add years of delay and tens of thousands of euro to the final bill – which is ultimately borne by businesses and voluntary groups," Mr Hanley said.
"We want to see a far greater number of cases settled at the Board, and fee scales introduced to control legal costs. Transforming the Board into a decision-making body, similar to the Workplace Relations Commission, should be examined."
