The hospitality sector has seen a 24pc increase in insurance costs between 2020 and 2022, with 84pc of hotels and guesthouses concerned about the impact of insurance costs over the next 12 months.
A report from the Central Bank’s into the insurance industry shows significant increases in profit margins for insurance companies and skyrocketing legal fees.
While average cost of settling public and employer liability claims through the Injuries resolution board dropped by a third in 2022 compared to 2020 average insurance premiums increased by 8pc.
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, while legal costs under the resolution board varied from €1,804 to €1,459 respectively.
New personal injuries guidelines were published in 2021 to replace the Book of Quantum but 76pc of injury claims settled in 2022 were still done so with reference to the Book of Quantum
Average compensation through the Injuries Resolution Board ranged from €21,439 for Public Liability to €26,366 for Employer Liability claims
Challenges in the insurance sector have not led to reductions in premiums or greater access to cover, according to the Alliance for Insurance Reform,
Insurance Ireland said it was “disappointing” to see a continued high level of claims going to litigation and because of the scale of this, the impact of Personal Injuries Guidelines has yet to be felt.
