Irish insurers continue to pay 50 per cent more than their UK counterparts for third-party injury claims on motor policies, despite recent reductions in the size of awards, according to the Society of Actuaries in Ireland.In a report published on Tuesday, it also found that legal costs in the State were actually rising compared to in the UK. “For the first time, analysis includes data covering 12 UK insurers and we have leveraged data for Ireland from the National Claims Information Database,” said Noel Garvey, chairman of the Society of Actuaries’ working group. “For every motor policy, Irish insurers are paying out roughly €70 more on average to cover the higher costs of injury claims relative to the UK,” he said, based on the report’s findings.Third‑party injury claims are claims made under a motor insurance policy for injuries suffered by someone other than the insured person. This could include another driver, a passenger or a pedestrian.The report confirms that injury-award levels in the Republic have fallen significantly since new personal injury guidelines were introduced in 2021. This reduction is stated to be 29 per cent, from €18,422 in 2020 to €13,000 in the second half of 2024. However, the report also finds that between 2015 and 2024, average costs per policy for third-party injury claims have been consistently higher in the State.In 2024, third-party injury claims cost-per-policy was €205 in the Republic compared with €135 in the UK, said the actuaries. “In 2024, the average settlement cost per third-party injury claim (at claimant level), for claims lower than €100,000 in Ireland was €23,200. By comparison, the average settlement cost per third-party injury claim which settled for less than €311,000 in the UK was €9,600,” the report finds.It said the difference in cost of 2.4 times was driven by higher compensation levels (2.6 times) and higher legal fees (2.8 times).And it notes: “While the overall difference has narrowed from 3.0 times in 2018, the relative difference in legal fees is increasing, from 2.5 times in 2018 to 2.8 times in 2024. This highlights that legal costs remain one of the key drivers of the higher third-party injury claims cost per policy in Ireland.”The report says that while reforms in the Republic have led to a reduction in the cost of injury claims, the relative gap with awards in England and Wales identified by the Personal Injury Commission back in 2018 has largely been maintained, particularly for soft-tissue injuries.Britain introduced a whiplash tariff system in 2021, setting out fixed payments for all whiplash injuries, depending on how long the impact lasts in bands up to two years. The awards range from £240 (€277) for injuries with a prognosis of no more than three months to £4,315 where a claimant is expected to experience the effects for between 18 and 24 months.A modest premium is allowed for associated psychological injury, such as low-level travel anxiety or occasional loss of sleep.Will new pay transparency rules close the gender pay gap for good? Listen | 28:55At the lower end of the scale, the Society of Actuaries report says, awards in Ireland for injuries with an expected three-month recovery period are 523 per cent greater than in England and Wales. At the more extreme two-year end of the scale, the difference is less pronounced, the report says, but still 82.5 per cent higher here – €9,000 compared to the equivalent of €4,932.The report notes that apart from significantly lowering payments for whiplash injury, the UK whiplash tariff system “has coincided with a significant drop in motor injury claim frequency in the UK”.“The Society of Actuaries’ working group is very cognisant that while award levels are a significant component of claims costs, they are not the sole determinant of insurance premiums,” said Garvey. “Claims frequency, legal costs, fraud controls and market competition also materially influence pricing outcomes.”