Central Bank releases latest motor insurance report
The Central Bank of Ireland has published its annual Private Motor Insurance Report alongside new research analysing insurance premium costs. These findings shed light on the factors influencing car insurance prices and contribute to ongoing insurance market reforms in Ireland.
Source:
Central Bank of Ireland
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⏱️ 2 min read
The Central Bank of Ireland released its annual Private Motor Insurance Report from the National Claims Information Database (NCID) on 20 October 2026. This report is complemented by additional research aimed at helping consumers better understand the breakdown of motor insurance costs and how insurers allocate premiums.
Director of Insurance Seána Cunningham highlighted that while average private motor insurance costs rose year-on-year in 2025, there were promising declines observed in the final two quarters. This trend aligns with the CSO consumer price index for insurance, which also indicates a continued decrease in average premiums into 2026. The research reveals that claims payouts constitute the largest expense for insurers, accounting for 60% of premiums – with 32% covering damage claims, 17% injury claims, and 10% legal and other claim-related costs.
Beyond claims, insurers incur operational expenses equating to 22% of premiums, broker commissions at 8%, and reinsurance costs representing 3%. In 2025, insurers collected more in premiums than they paid out in claims and costs, achieving an operating profit before interest and tax of 7%. The data reflects the stabilising influence of personal injury guidelines through reduced injury claims and compensation levels, signalling ongoing improvements in Ireland’s motor insurance market. These insights support the Central Bank’s commitment to transparency and informed reform in the sector.
Director of Insurance Seána Cunningham highlighted that while average private motor insurance costs rose year-on-year in 2025, there were promising declines observed in the final two quarters. This trend aligns with the CSO consumer price index for insurance, which also indicates a continued decrease in average premiums into 2026. The research reveals that claims payouts constitute the largest expense for insurers, accounting for 60% of premiums – with 32% covering damage claims, 17% injury claims, and 10% legal and other claim-related costs.
Beyond claims, insurers incur operational expenses equating to 22% of premiums, broker commissions at 8%, and reinsurance costs representing 3%. In 2025, insurers collected more in premiums than they paid out in claims and costs, achieving an operating profit before interest and tax of 7%. The data reflects the stabilising influence of personal injury guidelines through reduced injury claims and compensation levels, signalling ongoing improvements in Ireland’s motor insurance market. These insights support the Central Bank’s commitment to transparency and informed reform in the sector.
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