Allianz reveals plans to hike car insurance by another 5pc
Allianz will increase the cost of car insurance by another 5pc by the half-year point as insurance prices continue to climb across the sector.
It expects no more increases after that. The move means the company will have raised motor insurance prices by a total of around 10pc in 2016.
Commercial insurance prices will also rise by 10pc this year, Allianz Ireland chief executive Sean McGrath said in an interview with the Sunday Independent.
The latest figures from the CSO show that the cost of car insurance policies in particular have rocketed in the past year, across the sector.
Car insurance prices rose by 35.5pc in the previous 12-month period, according to May inflation figures from the Central Statistics Office. Home insurance prices rose 9.9pc.
McGrath said a volatile claims and awards environment was the single biggest contributor to price rises.
Insurance Ireland chief executive Kevin Thompson said that more increases were likely across the entire sector.
"Premiums are a function of claims and awards," said Thompson. "Until we address that volatility, we won't have stability of prices."
To lower costs the Injuries Board, which handles personal injuries claims out-of-court, should be reformed and given more powers, he said. Revamped guidelines for awards - the Book of Quantum - need to be followed more closely by judges, he added. Insurance Ireland is also seeking for the guidelines to be benchmarked against other jurisdictions.
Thompson rebutted assertions that insurers are refusing to share data on out-of-court settlements. His organisation shared settlement data to help with the review of the Book of Quantum, he said.
Sunday Indo Business