The intention of OUTsurance to start operations in the Republic, first reported by The Irish Times in January, comes after six years of profitability for the motor sector, following a period of sharp losses, and a series of reforms aimed at reducing volatility and coverage costs in a historically highly volatile market.
However, Boston-based Liberty Mutual is currently in the process of disposing its businesses in Ireland, Spain and Portugal in a deal that may be worth more than €1 billion. The Irish Times reported last month that Zurich Insurance Group, which has about a 10 per cent share of the Irish general insurance market, is in talks to buy the Liberty businesses being sold.
The average award by the Personal Injuries Assessment Board fell by 38 per cent in the first half of last year across motor, public and employers’ liability lines compared to the same period in 2020, before new judicial awards guidelines were implemented. There has also been a sharp decline in the number of High Court personal injury cases being lodged since the guidelines took effect in April 2021.
Insurers made a €176 million profit from motor insurance in 2021 – equating to 13 per cent of €1.35 billion of gross earned premiums, according to Central Bank data. Both figures were the highest for a full year since at least 2009 and contrast with a period in the middle of the last decade when motor insurers made large losses, which prompted a spike in premiums.
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