Insurer FBD says that the average cost of premiums in the first six months of 2024 rose by 8.3% compared with a year earlier, mainly due to the effects of inflation on the cost of claims.

Premiums for private motor insurance rose by 5.6%, with FBD blaming the increasing cost of motor damage claims, especially higher repair costs, and the higher volume of claims.

Premiums for home insurance increased by 11.5%, due to higher property sums insured as rebuilding costs continued to rise. Farm average premiums were up 6.9%.

The figures came in FBD’s first-half results, which showed a pre-tax profit of €32.3 million as the value of premiums written climbed by 10% to €226 million.

Storm costs

The profit figure represented a fall from the €39.5 million recorded a year earlier, due to increased weather costs from Storm Isha and higher motor-damage claims.

Property-claim notifications jumped by 29% due to an increase in the number of storm claims.

Tomás Ó Midheach (FBD chief executive) welcomed the certainty provided by the Delaney v Injuries Resolution Board case that confirmed that the Judicial Council’s Personal Injuries Guidelines were legally binding.

FBD also welcomed an announcement by the Minister for Justice accepting an expert group’s recommendations on the discount rate in catastrophic injuries, saying that it brought “welcome certainty”.