Auto Insurance Claims Fall When Company Earnings Rise – Leitrim Observer
Insurance companies saw profits jump in their motor business last year, according to a report from the central bank.
The report on private car insurance found that the price of the average car premium has also fallen.
The central bank report uses data from the National Claims Information Database.
The average claims costs per policy fell sharply between 2019 and 2020.
The report said that this was "mainly driven by reduced driving activity due to restrictions related to COVID-19. The effects can be seen in both the claim frequency and the average cost per incident in 2020".
On a quarterly basis, as of the 4th quarter of 2020, the average insurance premium has decreased by 16% since its peak in the 4th quarter of 2017.
The report found that the industry's profitability was 163 million euros last year. There was a profit margin of 12% versus an average margin of 3% over the past decade.