Deputy Pat the Cope Gallagher has said that unless the Government take immediate and precise action against the Insurance industry, then ordinary people will have to continue to suffer increasing costs and massive hikes in their insurance premia.
Motor insurance premiums in Ireland remain at one of the highest levels in all of Europe at 32% higher than those charged in 2014.
Typically, premia in Ireland are 3 to 4 times higher than any other European country.
In terms of insurance cover for businesses some small companies are being quoted 100% to 200 % hikes in their renewal on an annual basis.
Pat the Cope fumeded “Motor insurance premiums and insurance cover for businesses remain far too high at present. Young drivers, returning emigrants and drivers of old cars continue to be unfairly treated by a dysfunctional market, which is in total control and quite simply can name their price when it comes to issuing your annual insurance cover”.
The Donegal Deputy said that unless we have a functioning insurance market that operates in parity with European norms, we will not successfully bring in the new competition that is clearly required in the Irish market.
And he added that without reform and new competition, we will continue to be crucified with high costs.
He added “This government is once more playing catch up on insurance reform despite many commissioned reports and actions committed to under the Cost of Insurance Working Group and the Oireachtas Finance Committee.
“The Government’s approach of compile a report or two to buy time and relieve the public pressure on them rather than taking action that would actually help those that are struggling to renew their insurance premia.”
According to the Fianna Fail Deputy the government has failed to take action to tackle rising costs.
He said “For example, it is now nine months since the completion of the final report of the Personal Injuries Commission (PIC). Its central recommendation, a Judicial Council, has still not met to start compiling guidelines for appropriate general damages for various types of personal injury.
“A dedicated unit within An Garda Síochána to fight insurance fraud was first proposed in January 2017 by Fianna Fáil but yet here we are in August 2019 and nothing has happened.
“Here in Ireland we need to do a lot more to bring transparency to the insurance market. Many foreign insurance companies are reluctant to come here simply because this government is once more playing catch up on insurance reform despite many commissioned reports and actions committed to under the Cost of Insurance Working Group and the Oireachtas Finance Committee.
“We have a clearly dysfunctional insurance industry that is more powerful than our present Government, and until the proper balance is restored with the necessary changes to the quantum of insurance pay-outs, dealing effectively with multiple claims, combating fraudulent claims and new completion into the Irish market, until then the existing high premiums will remain unfortunately.”Tags: