Thursday 24 August 2017

If we ignore the facts, no action will be taken to correct issue of rising costs

The Insurance Statistics produced by the Central Bank of Ireland state that motor gross incurred claims have risen from €900m in 2011 to €1.1bn in 2014
The Insurance Statistics produced by the Central Bank of Ireland state that motor gross incurred claims have risen from €900m in 2011 to €1.1bn in 2014

Kevin Thompson

It was with some sense of relief that we received the news that the issue of motor insurance was going to be debated in Dáil Éireann. As an industry, we took it as a sign that after 18 months of highlighting the rising cost of claims, concrete actions were going to be taken to remove the entirely unnecessary level of volatility which has become a feature of the Irish insurance market.

We cannot continue to ignore the facts on why motor insurance rates are rising in Ireland. We must take concrete steps to normalise the market and remove volatility.

It is not in the insurers' interests for premiums to continue to rise. All that does is lead to more uninsured drivers, adding to the cost for all road users. Stability in the market is better for motorists, consumers and businesses. The elimination of claims volatility in the market will encourage the incumbent insurers to increase their capacity in the market, it will also enable further capacity by attracting in new players, which will be good for consumers.

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