O’Callaghan calls on government to get a grip on rising insurance premiums

Social Democrats TD and acting leader Cian O’Callaghan has criticised a report from the Central Bank, which reports that the cost of motor claims has increased by 23% in the first half of 2025.

The report from the National Claims Information Database tied the rise in a higher volume of motor claims and a notable increase in repair costs due to inflation.

O’Callaghan said this runaway inflation in the insurance industry is tantamount to a “dereliction of duty” from the government.

“These inflationary costs are driving up premiums for policy holders – in light of this, the government’s plan to increase personal injury payouts by 17% raises significant concerns,” he said.

The Dublin Bay North TD said “the proposed increase will inevitably result in higher premiums for motorists, businesses, and community and voluntary organisations across the country – this is particularly reckless in the midst of a cost of living crisis where people and small businesses are already struggling to get by.”

“While special damages for actual financial losses, such as lost income and medical costs, accurately reflect inflation, it is unreasonable to apply the same logic to general damages while current awards are still much higher than those in most other countries.

O’Callaghan said, “it is essential that the suggested increase is not merely rubber-stamped by the Minister for Justice.”

“I am calling on the Government to refer this issue to the relevant Oireachtas Committee for detailed scrutiny.”