Insurance premiums are continuing to spiral with new research showing recent renewals are costing an average 15 per cent more than previously.
This comes despite the drop in personal injury awards following the introduction of new judicial guidelines in April of this year.
The Alliance for Insurance Reform is now calling on the Government increase competition in the sector and move faster to implement reforms as insurance costs are still rising even though claims are less frequent.
Research carried out by The Alliance shows homecare businesses are suffering average increases for renewal of over 122 per cent and nursing homes facing hikes of 35 per cent.
Meanwhile, the hospitality industry has seen an average nine per cent increase for renewals despite the lack of activity in the sector during the pandemic.
Reduction in claims
Eoin McCambridge, managing director of McCambridge’s of Galway and director of the Alliance for Insurance reform pointed out the measures and changes that have been implemented which should bring costs down.
“The total number of liability-related personal injury claims has reduced by 47 per cent over the 11 years between 2009 and 2019 and a further 16 per cent last year,” Mr McCambridge said.
“PIAB has just announce a 40 per cent reduction in average personal injury awards. The Perjury Act has been commenced.
“The Garda Insurance Fraud Coordination Office has been opened. Economic and social activity has been slashed for the last 19 months.
“And to further reduce future risk, insurers are excluding Covid-19 from many policies on renewal. The risk associated with each and every insurance premium has plummeted in the last year and a half.”
Incumbent insurers
Peter Boland, director of the Alliance has said there needs to be more competition in the market to solve the problem.
“It is clear that the incumbent insurers cannot be relied upon to pass on savings. Government must act now to improve competition by getting additional underwriters into the market as a matter of extreme urgency,” Mr Boland commented.
“They must ensure that insurers hold firm on the new Judicial Guidelines rather than settling at higher rates to clear claims.
“And they must rebalance the duty of care in a way that is fair, reasonable, practical, proportionate and in the public interest; reform PIAB in a meaningful way; and get a publicly-owned fraud database established.
“Ultimately, they must ensure that all the savings being made are passed on to consumers so that Ireland gets affordable insurance right now and in the long term.”
