A rise in personal injury claims from motor and workplace accidents meant a sharp increase in underwriting losses for non-life insurance companies in 1997. Underwriting losses increased to £184.5 million from £144.7 million, according to figures published yesterday by the Irish Insurance Federation.

Although total premium income for the general or non-life insurance companies was 7.2 per cent higher last year at £1.45 billion, claims paid out for personal injuries and damage to property rose by 9.4 per cent to £1.26 billion. After commissions and administrative expenses were paid, the outcome for the year was a 28 per cent increase in underwriting losses to £184.5 million.

A breakdown of the figures shows that the problems arose mainly in motor and liability insurance. Underwriting losses on motor insurance rose by 19 per cent to £109.1 million with a 10.5 per cent jump in the number of claims to 199,368. Payments on motor insurance claims rose by 8 per cent to £696.4 million, while premium income from motor policies was 7 per cent ahead at £732.7 million.

Results from the liability market - employers take out liability insurance to protect themselves against personal injury claims by employees while public liability insurance is aimed at protecting the insured against claims for both personal injuries or property damage - deteriorated last year. The net underwriting loss was £83.6 million, an increase of 42 per cent. Premium income was just 4 per cent ahead at £244.6 million while claims jumped by 9.4 per cent to £275.1 million. Some 26,542 new claims were notified, 10.4 per cent more than the previous year.

Only property insurance showed an improvement with underwriting losses down from £3.2 million to £1.3 million. Premium income was 6.7 per cent higher at £360 million while claims were up 6.5 per cent to £241.8 million. New claims increased by 6.3 per cent to 152,305. Life assurance industry figures announced earlier this month showed a 28 per cent rise in premium income to £2.58 billion. Single premium income, or lump sum payments for policies, were 53 per cent higher at £1.29 billion while annual, or regular premium, payment were 11 per cent ahead at £1.29 billion.