The Evolving Landscape of the Irish Liability Market

Navigating a Changing Risk Environment

The liability insurance market in Ireland is undergoing a period of significant transformation. Legislative changes, shifting claims patterns, and evolving customer expectations are reshaping how insurers approach liability coverage. In particular, the transition from the Book of Quantum to the Personal Injuries Guidelines has had a major impact on claims settlements, with a reported 34% reduction in the average cost of claims settled under the new framework. However, with litigation still making up the vast majority of injury claim settlements, the full effect of these changes is yet to be realised. 

At the same time, the insurance industry continues to adapt to the combined effects of post-Covid claims trends and regulatory updates. With liability exposures becoming more complex, insurers are placing greater emphasis on clarity, accessibility, and ease of understanding in policy documentation. This shift is crucial in ensuring that both brokers and policyholders can navigate coverage terms with confidence.

Industry-Wide Movement Towards Clearer Wordings

A key trend in liability insurance is the industry-wide effort to modernise policy wordings. Recent updates from insurers, including those influenced by the Consumer Insurance Contract Act (CICA ) and the Central Bank of Ireland, have driven a shift towards clearer and more transparent documentation. This aligns with broader regulatory expectations around "clear and plain English" in policy language, ensuring that customers and brokers alike can interpret coverage terms more easily.

Many insurers have responded by restructuring policy documents to improve readability. This includes introducing clearly defined sections, reducing ambiguity in key clauses, and simplifying complex legal language. The goal is to enhance accessibility without compromising the technical integrity of liability coverage. Such changes are particularly relevant in a market where businesses are navigating evolving compliance requirements, making it critical for liability cover to be both comprehensive and easy to understand.

The Impact of Evolving Claims Trends

While legislative reforms have contributed to changes in claims patterns, the long-term impact remains uncertain. Amendments to the Occupiers’ Liability Act were welcomed, strengthening the prospects of defending suitable liability cases. The National Claims Database report has highlighted that only 4% of litigated claims have been settled under the new guidelines, meaning that a significant portion of liability claims still remain to be settled  under the pre-2021 Book of Quantum. Additionally, the  judicial council review has  recommended   an increase of 16.75% for general damages, further influencing claims dynamics.  This has the potential to negatively impact some of the hard-won reforms designed to keep claims cost to the benefit of consumer premiums.

Covid-19 has also played a role in shaping liability exposures, with many businesses facing claims linked to operational disruptions, health and safety concerns, and contractual disputes. These emerging trends, combined with inflationary pressures on settlements, mean that brokers play a more critical role than ever in guiding clients through liability coverage decisions. Understanding how claims patterns will normalise in the coming years will be key to ensuring that businesses remain adequately protected. 

Strengthening Broker Support in a Complex Market

Given the evolving nature of liability risks, insurers have recognised the need to equip brokers with better tools and resources. The industry is seeing a movement towards greater clarity in policy documentation, with a focus on:

• Improved accessibility: Policy wordings that are structured for ease of navigation, with clear definitions at the outset.
• More transparent coverage terms: Revised schedules that provide a clearer breakdown of liability limits and exclusions.
• Refined conditions and compliance expectations: Clearly outlined policyholder responsibilities to ensure clarity and avoid coverage disputes.

Brokers remain at the forefront of helping businesses understand their liability exposures and ensuring that clients have coverage that is both fit for purpose and future-proofed against regulatory and claims trends. In this rapidly evolving space, collaboration between insurers and brokers is essential to delivering the right protection for businesses of all sizes. 

Looking Ahead: A More Transparent Future

The liability market in Ireland is entering a new phase—one that prioritises clarity, transparency, and adaptability. As regulatory expectations evolve and claims trends continue to shift, insurers are refining their policy offerings to reflect these changes. The ongoing emphasis on structured, easy-to-understand documentation is a positive step forward in ensuring that liability coverage remains relevant and accessible.

For brokers, this represents an opportunity to strengthen client relationships by providing informed guidance on how policy updates align with emerging market trends. In addition, the importance of a strongly rated Insurer brand with an established claims reputations is likely to be valued by brokers and business clients.  By staying ahead of these developments, brokers can reinforce their value as trusted advisors in an increasingly complex risk landscape. 

Ed Boylan

Senior Underwriting Surveyor