Two-year deal on insurance set to keep prices down
Published 05/11/2015 | 02:30
A SECOND insurance broker has launched a two-year home insurance product, in a move that will allow consumers to lock down the price of their premiums for two years at a time when insurance prices are increasing.
InsureMyHouse.ie said most home policies were rising by 6.5pc a year.
The firm said consumers could sign up for its two or three-year policies, which would insulate them from premium rises during the period.
The move is likely to see more insurers and brokers introducing long-term polices as a way of keeping premiums down.
A rise in the number of claims and an increase in the total amounts in claims being paid out by insurers has seen premiums rise.
The price guarantee means that if an annual premium costs €400, then taking that up for two years will mean it costs €790, with the inclusion of an administrative discount.
The cost for three years in such a scenario will be €1,180. The policies are underwritten by Zurich.
This price will be irrespective of any claims made on the policy over the time period.
InsureMyHouse.ie managing director Jonathan Hehir said: "While 2012 and 2013 were profitable for insurers, 2014 saw a reversal of that trend with significant losses of over €30m.
"We've looked at the claims volumes insurers have experienced over the last 12months and it's clear that everything is on the up, which means so too are premiums."
He warned that bad weather this winter could see further increases overall, with those with claims or in claim-affected areas hit by additional penalties at renewal.
Mr Hehir added: "If a person chooses to opt in for the next two or three years then they will be insulated from any market rate increases during this time."
Earlier this year broker Blue Insurance began offering two-year motor and home insurance. Its motor insurance is underwritten by Zenith Insurance, while the home insurance product is underwritten by UKG Ireland.