Insurance levy will be passed on to consumers, warns CFM
Leading insurer CFM Group has criticised plans for an insurance levy, saying it will be passed on to consumers rather than acting as a deterrent to premium increases.
The proposals come from Alliance TDs and are to be discussed with Finance Minister Paschal Donohoe ahead of the Budget.
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The insurance industry is being investigated by the Competition and Consumer Protection Commission, which will probe whether sharp or anti-competitive practices are resulting in businesses being ripped off.
Soaring premiums have been blamed for putting a series of activities at risk including street festivals, farmers' marts, tidy town efforts, children's play centres and sports events.
Data cited by CFM showed profit margins for general insurers are 6.5pc and that low profitability means insurers are quitting the market.
"We need more competition, not less. Competition in any fully functioning market drives down prices," said CFM group managing director Jonathan Hehir.