The CBI’s National Claims Information Database report on the employers’ liability, public liability and commercial property markets provides a detailed breakdown of trends in the sector, which has been a major focus of government reforms aimed at bringing down the overall cost of cover in particular for small businesses.

The data shows some reforms appear to be working, but the overall effects are limited.

The number of public liability claims, which includes the classic trips and slips on business premises, fell sharply – from 14,864 in 2009 to 8,462 in 2023, the report shows.

But higher average claim costs – up almost 70pc – over the same period meant the ultimate cost of all public liability cases only fell to €175m by 2023, from €182m in 2009, despite the plunge in overall numbers.

The report also shows most that the vast majority of personal injuries claims (71pc) are still going to court – even though compensation payouts through the Injuries Resolution Board are the same are higher and legal costs massively lower.

Too few cases are being finalised at the Injuries Resolution Board stage

The average award for people who went through the Injuries Board in 2023 was €24,298. Legal costs in those cases averages less then €1,000.

Average compensation where cases went to litigation were €39,456 when all cases were included, but that falls to €23,803 for the vast majority of cases where a payout was under €150,000.

Those smaller cases made up 94pc of litigated cases – and, stripping out the highest value cases, the average legal cost of litigated public liability cases was €23,261.

The Alliance for Insurance Reform, which represents insurance customers including SMEs, said the report shows too few cases are being finalised at the Injuries Resolution Board stage, and too many going down the more expensive litigation channel.

That view was supported by Insurance Ireland, which represents insurance companies, who said people who go down the legal route instead of making claims via the Injuries Resolution Board have similar outcomes but over a much more protracted period.

“Legal fees are 25 times higher through the litigated channel with no benefit to the claimant.

“Due to the length of time it takes going through this route, the true value of the compensation award is significantly less in purchasing power due to inflation – that is, €20k today is worth significantly more than €20k would be in six years’ time,” said Insurance Ireland’s Moyagh Murdock.

She said the data shows that 90pc of policies in 2023 had a premium of less than €5,000. More than half were less than €1,000.

The data showed insurance cost rose in 2023 – up 4pc on average.

Insurers’ profits also increased, with operating profits across the sector of 13pc in the year. That was well up on the average operating profits of just 2.1pc across the 2009-2023 period as a whole.

Ms Murdock said that represented stabilisation in the Irish market.

“The report points to a more stable market environment following a longstanding period of loss making in these market segments, with an overall 2.1pc level of profitability between 2009 and 2023,” she said.

She voiced concerns that reforms to date within the insurance market will be put at risk if Finance Minister Jim O’Callaghan accepts a proposal from the Judicial Council, which is made up of all Irish judges, to lift awards made under the Personal Injuries guidelines by 16.7pc to match inflation.