Mart insurance to remain 'stubbornly high' until there is a change in accident frequency, FBD warns
Mart insurance premiums will remain stubbornly high until there is a change in the severity and frequency of accidents, FBD Insurance has said.
In recent years marts have been under increasing pressure due to exorbitant insurance claims being charged as a result of increased accident claims.
In a statement released by FBD today, a spokesperson said that high insurance premiums are unlikely to change until accident rates at marts decrease.
“Insurance works on the premise that the premiums of the many pay for the claims of the few. Unfortunately until there is a change in the frequency and severity of accidents in marts, mart premia will remain stubbornly high,” the FBD spokesperson said.
“The operating environment for marts has changed significantly in recent times. Less docile animals are being presented for sale as part of a changing livestock mix in Ireland and this combined with the age profile of some mart patrons presents a very challenging environment.”
They added that reduced commodity prices and reduced trading volumes mean that many marts aren’t able to invest in safety infrastructure that could prevent accidents and save lives.
“Marts have been and continue to be a loss-making sector for FBD, with claims in marts equating to 144pc of the premia charged from 2013 to Q3 2018. This is not including the cost of managing claims, the cost of sales and staff, and the cost of risk management for this sector,” they continued.
They said due to the severity of the injuries in marts, the average settlement takes longer than average, further adding to legal fees and other costs in Ireland’s inflated claims environment.