Allianz hikes premiums by 52pc as it records losses
Insurer Allianz lost money in this market in the three months to March despite raising its motor insurance premiums five times last year.
The multiple premium rises meant they were 52pc higher than a year earlier. This means that a driver who had paid a premium of €500 for motor cover was asked to pay €750 a year later.
However, there was better news when specialist motor insurance provider XS Direct said it was re-entering the market.
The Dublin-based company had been concentrating on the UK market since 2014, but has now decided to focus back on Ireland.
XS Direct targets customers who have had a claim and are willing to accept a high excess in return for lower premiums than they are being quoted by their existing insurer.
Allianz reported an operating loss of €9m in the Irish market in the first quarter of this year.
Net earned premiums contracted from €102m to €75m, figures published by the German parent company show.
Insurance companies are hiking premiums due to losses being made on their businesses, and changes in regulatory rules that require them to put more funds into reserves.
They have also been told by the Central Bank to increase premiums to boost their capital reserves.