Hoteliers urge government not to increase insurance costs

Tuesday, July 08, 2025. 10:27am

Government set to approve 17% increase in personal injury award levels resulting in a hike in insurance costs

The Irish Hotels Federation (IHF) has urged the Government not to approve a proposed 17% increase in the value of personal injury awards, a move that would result in a hike in insurance costs for already struggling hospitality businesses. Following recommendations from the Judicial Council, the proposed increase is set to be brought before the Cabinet by the Minister for Justice on Tuesday 8th July.

IHF President Michael Magner said:

“At a time when cost competitiveness should be key, there is simply no justification for approving such an enormous increase in personal injury awards. Current levels of awards in Ireland are already far higher than in other countries. For instance, it is only a few years ago that the Personal Injuries Commission found awards here to be over three times higher than those in England.”

“This disparity feeds directly into the exceptionally high insurance premiums, which businesses throughout our sector and wider tourism industry simply cannot afford. As it stands, the cost of doing business is already the biggest challenge facing hotels and other hospitality businesses.”

“The prospect of the Government approving the proposed increase is truly baffling and threatens to undo much of the progress on insurance reform achieved by the last Government. Unfortunately, these reforms have yet to deliver any meaningful benefits for policyholders. Priority should be given to addressing the record levels of profits by insurance companies and the unjustifiable volume of cases going into expensive litigation through the courts – cases that should be resolved by the Injuries Resolution Board.”

Mr Magner noted that, in making its recommendations, the Personal Injuries Guidelines Committee of the Judicial Council acknowledged that they did not find it possible to carry out any meaningful analysis of the quantum of court awards under the existing personal injury guidelines, which were introduced in 2021. In the absence of meaningful analysis of the adequacy or effectiveness of the current awards levels, a blanket increase in the value of personal injury awards is therefore very difficult to justify. 

“Before any decision is made that could drive up insurance costs, we are calling for a public, transparent and rigorous review of the Judicial Council’s recommendations, preferably via an Oireachtas Committee. This should include a full impact assessment in relation to insurance premiums, including a business cost test for SMEs. Our overriding concern is to avoid any unravelling of the potential benefits of the Government’s programme of insurance reform before they have even had time to deliver.”

Share this:

Categories:
Explore topics:

Discover More