In 2025, Ireland’s personal injury landscape continues to evolve as claim patterns shift, legal reforms progress, and insurance costs rise. Claim volumes appear to be stabilising following the disruption of the pandemic, but litigation remains the primary and most expensive method of resolving disputes. Here we review some of the key trends shaping personal injury claims in 2025.
Changing claim volumes and award values
Applications to the Injuries Resolution Board (IRB) totalled 20,318 in 2024, reflecting a modest 1% increase on the previous year but still approximately 35% below pre-pandemic levels recorded in 2019. While motor claims rose by around 4%, employer liability claims declined by 5%, and public liability claims remained broadly steady. These trends suggest a gradual stabilisation of claim volumes after several years of disruption and structural change in the sector.
In terms of compensation, the median award issued by the IRB rose to €13,000 in 2024, a 12% increase on 2023, yet still 29% below 2020 figures, prior to the introduction of the Personal Injuries Guidelines. This indicates that while some upward movement in award levels is occurring, the overall impact of the guidelines in reducing claim values remains significant. The continued gap between pre- and post-guideline awards remains a key consideration for both claimants and legal advisors.
Litigation remains predominant
Despite ongoing efforts to streamline personal injury claims through the IRB, litigation remains the dominant route for resolving disputes. As of 2024, approximately 68% of personal injury claims were resolved through litigation, accounting for 71% to 89% of total claims-related costs, largely due to significantly higher legal fees. The average legal cost for a litigated claim now stands at around €23,000, compared to just €1,000 for cases concluded via the IRB. This disparity not only prolongs the resolution process but also imposes a considerable financial burden on insurers, businesses, and, in many cases, claimants themselves. This has led to increased calls for reforms to encourage early, non-contentious settlement routes.
Ongoing impact of the Personal Injuries Guidelines
The introduction of the Personal Injuries Guidelines in 2021 was a landmark reform aimed at standardising awards and curbing the historically high levels of compensation in personal injury claims. Since their implementation, awards have fallen by between 22% and 39%, depending on the settlement channel, with the most substantial reductions seen in soft tissue injuries and minor claims. While insurers and some business groups welcomed the guidelines for helping to contain costs, many legal professionals and claimants expressed concern that the reductions were disproportionately harsh, particularly for lower-value injuries.
In response to sustained criticism and a review by the Judicial Council, a proposed 16.7% uplift to general damages was announced in early 2025, which would increase the maximum award for catastrophic injuries from €550,000 to €642,000. However, in July 2025, the Government decided not to bring the proposal before the Oireachtas, effectively vetoing the increase, citing fears over rising insurance premiums and the impact on small businesses and charities.
A rise in psychological injury claims
Psychological injury claims have seen a notable rise in recent years, with psychiatric-related applications to the IRB increasing from around 5% of total claims in 2021 to 14% by late 2024, before levelling off at that rate. This growth reflects broader societal trends, including increased awareness of mental health issues and greater willingness among claimants to seek redress for stress-related injuries, particularly in workplace and accident contexts. While the figures appear to be stabilising, the rise has prompted insurers and employers to review their risk exposure and prompted calls for clearer guidance on assessing psychiatric harm.
Increasing insurance premium pressures
The rising cost of personal injury claims has contributed to significant pressure on insurance premiums across key sectors. In early 2025, motor insurance premiums increased by approximately 9%, bringing the average premium in Ireland to €616, nearly double the EU average of around €315. This trend has raised serious concerns among small businesses, charities, sports clubs, and community organisations, many of which have warned that further hikes could threaten their ability to operate. The fear of litigation and spiralling costs is driving demand for reform that strikes a fair balance between compensation rights and affordability.
Policy and legal reform outlook
In response to ongoing challenges in the personal injury landscape, the government launched its Insurance Reform Action Plan 2025–2029, aimed at improving claim resolution efficiency and stabilising insurance costs. Central to this initiative is the strengthening of the Injuries Resolution Board’s remit and enhancing transparency in the Personal Injuries Guidelines process. The plan seeks to reduce litigation reliance and promote faster, lower-cost settlements by introducing structural and procedural changes across the claims system.
Key measures proposed under the Action Plan include:
- Expanding the IRB’s authority to mandate mediation and manage new medical or evidential material mid-process
- Encouraging greater acceptance of IRB awards through educational outreach and procedural streamlining
- Reviewing legal cost structures for claims resolved through the IRB, with a focus on proportionality and fairness
- Enhancing transparency and monitoring of the Personal Injuries Guidelines to ensure consistency and adaptability
- Ongoing stakeholder engagement to assess the impact of reforms and adapt to evolving legal and insurance environments
Require assistance with bringing a claim?
As the personal injury landscape continues to shift through legal reforms, evolving claim types, and rising costs, navigating the system can be challenging, particularly for complex claims. Whether you’re dealing with a physical or psychological injury, understanding your rights and the best route to compensation requires expert advice. At McCarthy + Co, our experienced personal injury solicitors can provide clear, practical guidance tailored to your situation. Arrange a free initial consultation using our confidential online form.
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