RSA raised premiums in Irish market by over 20pc
Published 05/11/2010 | 05:00
INSURANCE giant RSA pushed through rate increases of more than 20pc in its Irish household and personal motor insurance books in the third quarter of the year.
The UK PLC, which claims to be Ireland's second-largest insurer, following the recent acquisition of online brokerage 123.ie, confirmed the Irish rate action in a group-wide interim management statement.
The higher rates saw premium growth slow to 4pc in the third quarter, against a 5pc rise in the first half of the year.
RSA expects to grow rapidly in the coming quarters after the acquisition of 123.ie.
In its statement yesterday, the company claimed that the 123.ie deal had made RSA the "second-largest insurer in the Irish market".
However, industry figures dispute this assertion, since RSA must secure renewals from 123.ie's customers to consolidate that position. That could be more difficult if RSA is committed to rate increases, since 123.ie has traditionally competed primarily on price.
Some insurers have signalled plans to raise home-insurance rates by as much as 50pc after record weather claims triggered losses of more than €170m in the household-insurance market last year.