The speed at which insurance claims are settled is increasing due to the introduction of the Personal Injuries Assessment Board (PIAB), the Financial Regulator has said.
The Regulator's latest motor insurance statistical report shows that by the end of 2001, just 41 per cent of total claims costs had been settled for accidents that occurred that year for comprehensive policies.
The Financial Regulator
But by the end of 2004, the industry had settled 87 per cent of total claim costs for 2000.
"It is expected that 2005 statistics, will show a change in this trend, with a larger percentage of costs being settled earlier due to the introduction of the PIAB in 2004," the report said.
Consumer Director Mary O'Dea said the introduction of PIAB - which commits to assessing claims within nine months - means that the speed of claims settlement is increasing.
"The significant difference for consumers is that they can now go directly to the PIAB where the processes have been designed to help people make their claims in a simple and straightforward way.
"The reduced costs associated with PIAB compared with the litigation process is also good news for consumers," she added.
The report shows that accident frequency in 2004 grew for the first time since 1997, increasing by 7 per cent for comprehensive cover and by 13 per cent for third party fire and theft cover.
The motor insurance market grew by 81 per cent to almost 1.5 million policies between 1997 and 2004, the report said.
Average premiums in 2004 fell by 18 per cent for comprehensive cover and by 16 per cent for third party fire and theft cover.
"This followed a period of rapidly rising premiums, which grew by 45 per cent for comprehensive cover and by 70 per cent for third party fire and theft cover between 1997 and 2003," the report said.
In 2004, average claim costs grew for the first time since 1997, with a 6 per cent increase in costs for comprehensive cover and 10 per cent for third party fire and theft cover.