Aviva Insurance Ireland DAC (Aviva) today announced that it paid out €273 million in claims to its general insurance customers and third-party claimants in 2024, which was broadly in line with the €274m paid the previous year. While the overall amount paid remained static, there were some changes evident in the key drivers of claims across the various categories of insurance.
Property claims
Overall payments on these claims decreased by 9% reflecting the relatively benign weather during the year. While storm Darragh occurred in early December 2024, most of the claims’ settlements would not have been made until January of this year.
Motor claims
The total value of payments made on motor damage increased by 12.7%, adding to a similar increase in the previous year. Inflation in the cost and availability of vehicle parts, allied to a shortage of skilled labour means that the cost of motor damage repair continues to run well ahead of general inflation.
The total amount spent on injury claims increased by 10% on 2023. The failure of more than 50% of claimants to positively engage with the Injuries Resolution Board continues to drive claims through the courts system, with resultant delays. This means that a significant number of claims which are subject to the reduced values introduced by the government in 2021, have yet to be resolved and the payments made in 2024 still include cases subject to the higher value awards. These delays also generate higher legal costs.
These figures demonstrate our commitment to supporting customers when things go wrong. Our focus is on providing a fair and speedy resolution to settling our customers claims. Our claims team is supported by a nationwide network of motor repairers and property loss adjusters who seek to deliver an excellent service to our customers.
Brian O’Connor, Chief Claims Officer at Aviva
Court prosecutions
“We are pleased to see the trend whereby individuals perpetuating insurance fraud continue to be prosecuted in the courts, with some of those convicted having received significant jail sentences. We welcome this development having spent many years investing in resources to fight fraud and, while we have seen an increase in the number of people who withdraw their claim before a court hearing due to our refusal to settle out of court, it is only when the justice system is seen to consistently punish convicted fraudsters that a true deterrent will be in place.
“The current uncertainty in world markets due to tariffs has created a trading environment where the cost of motor vehicles and parts are potentially set to rise significantly, adding to the last three years of hyper-inflation in this sector. Tariffs create uncertainty for supply chains which also contributes to cost in both motor and property repairs as well as creating delays for customers.
Insurance reform
Despite good progress on the government’s Action Plan for Insurance Reform in recent years, we see a number of storm clouds on the horizon. The recommendation by the Judicial Council to the Minister for Justice that the Personal Injury Guidelines be increased by 16.7% would, if approved by the Oireachtas, erode much of the progress made under the government’s insurance reform agenda over the last few years. Given that expenses incurred by claimants, which may be subject to inflation are paid separately, it seems inequitable that a 16.7% should be added to compensation figures which were deemed reasonable just four years ago. It is to be hoped that the Minister and the Oireachtas will take a different view and maintain control of injury awards which are still more than four times higher than corresponding awards in other countries.
Brian O’Connor, Chief Claims Officer at Aviva
“We continue to pay all genuine claims and to support government reforms and the Injuries Resolution Board process. We also work closely with our service partners to mitigate the impact of inflation and supply chain issues on damage costs. We remain focussed on our core purpose, providing an excellent service to our customers when they have claims with us,” concluded Brian O’Connor.