Insurance industry narrative on premiums doesn’t add up – McCormack
Ciara McCormack, Sinn Féin general election candidate for Tipperary, has challenged the assertion by the Minister of State, Michael D’Arcy, that insurance premiums are high because of the amount paid out on claims:
“In the last few weeks, politicians and representatives of the insurance industry sat before the Oireachtas Financial Committee to deliberate the cost of insurance for consumers.
“Minister Michael D’Arcy stated that the reason costs are high is because claims and awards are driving up them up. This is a narrative that has been pushed by the insurance industry for a number of years. However, on closer inspection, the evidence doesn’t add up.
“There is no evidence to suggest that compensation rates are the driving force behind steep increases in premium rates. Over the last decade, damages have remained relatively static; all the while, car insurance premiums alone went up by 70% from 2013-2016. Claims do not correspond to this premium rate increase in any way.
“Motorists are being fleeced primarily because the insurance industry has been operating like a cartel.
“It’s no coincidence that Irish insurance firms are being investigated by the EU for suspected breaches in competition regulation.
“In an effort to deflect from this, the government and the insurance industry are overstating the costs that claims are having on pushing up premium rates.
“A comprehensive report and a more critical attitude are needed to address the claims of the insurance industry.”
