The figures are revealed in the second annual private motor insurance report of the National Claims Information Database (NCID)

Of injury claimant settlements between 2015 and 2019, half of injury claimants settled directly, 17 per cent settled through the Personal Injuries Assessment Board (PIAB) and a third settled through litigation.

This corresponds to 22 per cent of injury costs settled directly, 12 per cent settled through PIAB and around two-thirds (67 per cent) settled through litigation.

For direct settlements, the average compensation was €13,427 and average legal costs were €1,397, while for PIAB settlements, the average compensation was €23,137 and average legal costs were €716.

For litigated settlements, the average compensation was €46,214 and the average legal costs were €23,409. Among the vast majority (85 per cent) of litigated settlements which were settled for less than €100,000, the average compensation was €23,572 and the average legal costs were €14,949.

The report also reveals that the average cost of a claim rose 65 per cent between 2009 and 2019 while the frequency of claims fell by 45 per cent.

The cost of claims per policy fell by nine per cent while the average earned premium per policy rose by over a third (35 per cent).

Claims costs were 72 per cent of earned premium between 2009 and 2019. In 2009, there was a loss ratio of 88 per cent; this was down to 59 per cent in 2019.

Mark Cassidy, director of economics and statistics at the Central Bank, said: “This, the second motor insurance report, provides key information to enable understanding of the operation of the motor insurance market in Ireland.

“The insurance industry plays a critical role in the Irish financial services industry and for the economy and its citizens. The new data that we are releasing today will improve transparency in the Irish motor insurance market, particularly with regard to claims costs, settlement channels and premiums paid by customers.

“The report has been extended this year to provide further information on settlement channels, premium trends and information on Claim Development Patterns, which are important enhancements that can assist market participants in their understanding of claims costs.”