Ireland
Cost of settling motor insurance claims increased 23% in the first half of last year
Motor insurance claims costs in Ireland rose 23% in the first half of 2024 compared to late 2023, reaching €414 million, largely due to an increase in damage claims, according to the Central Bank. While average injury claim payouts under €100,000 have dropped since 2020, legal costs remain high—making up over 40% of total costs in litigated cases. The proposed 16.7% increase in Personal Injuries Guidelines is drawing criticism, with industry groups warning it could drive premiums higher. Business owners and insurers argue the timing is poor, especially as legal expenses continue to climb and many claims still go through costly litigation.
Latvia
Electric scooter owners now need OCTA: how will this affect other vehicle owners?
As of July 1, Latvia requires electric scooters to have mandatory civil liability insurance (OCTA), but this is not expected to impact premiums for other vehicles, according to LTAB Chairman Jānis Abāšins. He noted that claims from electric scooters are relatively low and any compensation paid from the Guarantee Fund can be reclaimed from uninsured users. So far, only 19.7% of privately owned scooters have been insured, compared to 98.8% of those owned by legal entities. OCTA for scooters is estimated to cost between €24 and €50 per year. LTAB and other institutions plan awareness campaigns to support gradual adoption.
Motor Insurance Directive and compensation funds: Amendments to Maltese Law and European development
Malta has amended its insurance laws to align with the updated EU Motor Insurance Directive, which now requires Member States to establish Compensation Funds covering claims when insurers become insolvent. These funds must compensate injured residents even if accidents occur abroad, with reimbursement mechanisms between Member States. Malta’s Protection and Compensation Fund was expanded to include insurers operating from Malta but covering risks in other EU states. A recent CJEU ruling clarified that injured passengers must not be required to prove they were unaware a vehicle was stolen to claim compensation. Meanwhile, EIOPA has called for the Motor Insurance Directive to fall under its supervision to strengthen consumer protection.
Aviva's Regulatory Green Light: A $5 Billion Play for UK Insurance Dominance
Aviva has secured final regulatory approval to acquire Direct Line for £3.7 billion, making it the UK's largest motor insurer. The deal promises £100 million in annual synergies by 2025 through operational efficiencies and cross-selling across a combined customer base. Analysts see the acquisition as a strategic win, giving Aviva greater pricing power in a £20 billion market. While integration risks exist, they are considered manageable given Aviva’s strong merger track record. Investors are viewing this as a timely buy opportunity, with share gains expected as synergies materialize.
Germany
Combustion engine ban: No more new diesel and petrol vehicles from 2035
Starting in 2035, the EU will ban the sale of new cars powered by fossil fuels like gasoline and diesel. However, vehicles running exclusively on CO₂-neutral e-fuels will still be permitted under a new vehicle category. Existing vehicles and used cars are not affected by the ban, and spare parts for combustion engines will remain available. The EU aims to reduce vehicle CO₂ emissions to zero by 2035, with interim targets set for 2025 and 2030. E-fuels may be integrated into the emissions regulations, though technical measures like sensors may be required to prevent the use of fossil fuels. Sufficient EV charging infrastructure is also being expanded to support the shift toward electromobility.