The cost of motor insurance in Ireland has shot up despite claims falling drastically during the same period, a new report has revealed.
The shocking report was released last night by the Central Bank.
Premiums increased by over a third between 2009 and 2019, despite the cost of claims per policy falling by 9% over the same period.
The report found that claims fell by 45% over the 11-year period covered in the report.
However, the cost per claim increased by two thirds over the same timeframe from €2,726 in 2009 to €4,487 in 2019.
The report also looked specifically at the years 2018 and 2019, during which it found that the price of the average policy reduced by 4% while the cost of claims per policy fell by 1%.
The average cost of a claim increased by 4% but the frequency of claims fell by 5%.
Insurers’ operating profit as a percentage of total income was 10% in 2019 compared to 9% in the previous year.
Insurance Ireland said the figures pointed to an industry that was cyclical and showed signs of volatility.
“The insurance industry, more than other industries, experiences cycles of contraction and expansion. We would like to see less volatility over time,” Moyagh Murdock, CEO of Insurance Ireland said.
“A stable, healthy and profitable insurance sector is fundamentally important in a functioning economy,” she added.
Ms Murdoch said the key to reducing volatility was the delivery of reforms needed to reduce the high and inconsistent cost of claims.
“That’s why we fully support the Government’s reform agenda through the personal injuries guidelines, the strengthening of the Personal Injuries Assessment Board and the review of duty of care laws among other areas. This in my view will deliver better value for consumers in the long run.”
Donegal Deputy Pearse Doherty has been a long-time campaigner against the cost of insurance and recently included a Bill before the Dail on the matter.Tags: