A new report on motor insurance shows the average cost of a premium fell by 7% last year.
The data published by the Central Bank for 2020 also shows a 26% in the number of claims by drivers.
Insurers also issued premium rebates amounting to €42.5 million due to Covid lockdown restrictions.
Director of Economic and Statistics at the Central Bank, Mark Cassidy, says insurers still made a profit despite the money they gave back to customers.
"The average rebate payback last year was the equivalent of 3% of premiums, but some of the benefits to policy holders came in through reduced premiums at the time of renewal rather than rebates.
"Overall the average reduction in premiums was 7% last year, but the average cost of claim paid out per policy was higher than that, it was down by 20% than that.
"That differential contributed to the 12% operating profits across the sector."
