Donegal Deputy Pearse Doherty has said that the insurance industry is continuing to rip off consumers and pocket savings brought about by recent reforms.
The Sinn Fein TD was commenting as 95% of the 1390 respondents to a survey he conducted on motor insurance stated that their premium had increased in the past 12 months, while 98% of respondents said they had made no claim against their policy in the same period.
He said it was time to end the insurance rip-off, and that his legislation, the Judicial Council (Amendment) Bill, would hold the industry to account and apply downward pressure on insurance premiums.
He added “For years, the industry made bogus claims that fraudulent claims were driving up insurance costs. Information I received was that the number of fraudulent claims that insurance companies were reporting to the Gardaí was a small fraction of the 20 percent of all claims that they had previously claimed to be fraudulent
“My legislation to strengthen consumer protections in their insurance contracts became law in 2019 and tipped the balance in favour of policyholders.
“I then led a campaign to ban the unfair and discriminatory practice where insurance companies were artificially hiking the premiums of renewing customers.
“But it is clear from the responses to this survey that despite these reforms, the insurance industry is continuing to fail consumers. Prices are too high for workers and families while profits soar.
“Respondents speak of being ‘fleeced’ and having to make increasingly tough choices.
“This is unacceptable, particularly at a time when motor insurance profits reached their highest level in more than a decade – reaching €159 million in 2022 alone.’
He added that the insurance industry is making huge profits but not passing any savings on to motorists.
“This industry continues to record bonanza profits, but it is clear that instead of passing on the substantial savings made from reduced claim costs to customers in full, insurance companies are pocketing the savings to bolster their profits.
“Sinn Féin’s survey makes that very clear with 95% of the 1390 respondents stating that their premium had increased in the past 12 months, while 98% of respondents said they had made no claim against their policy in the same period.
“The purpose of reforms such as the Personal Injuries Guidelines was to deliver reduced prices for customers and small businesses, not increase industry profitability.
“My legislation, the Judicial Council (Amendment) Bill in 2021, would require the insurance industry to report to the Central Bank detailing how it has or hasn’t passed on these savings to customers – euro for euro.
“This would allow the Dáil to hold the industry to account and apply downward pressure on prices.
“It is time now to end the delays, end the excuses, and take action.
“It is time to progress this bill, protect consumers, and pressure the insurance industry to do the right thing and cut prices.”
The results of Sinn Féin’s motor insurance survey can be read here.
