Insurance Stats Contradict Industry Claims says O’Rourke

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Fianna Fail TD, Frank O’Rourke, has stated that information received from a reply to a recent Parliamentary Question flatly contradicts Insurance Industry claims that the cost of claims are responsible for rising insurance premiums.

“According to a reply to a recent Parliamentary Question that I received, gross written premiums received by the Insurance Industry exceed claims paid across the industry by a higher amount in 2015, than during any other recent year. This is despite the fact that insurance premiums have rose during that period.”

“In 2011, gross claims paid by insurance companies were approximately €1.6bn while gross premiums paid to insurance companies were €1.1bn. In 2015, gross claims paid by insurance companies were approximate €1.1bn while gross premiums paid to insurance companies were approximately €1.4bn. “

“Over the past three years, motor insurance premiums have risen by over 50% and the Government has failed to take decisive action to stem these rises that are placing families in severe financial difficulty. The rising cost of insurance is raised with me on a regular basis at my weekly clinics” stated Deputy O’Rourke.

“Over the last year, I have continued to raise the importance of reducing motor insurance costs. I suggested at an Oireachtas Committee that the Competition and Consumer Protection Commission (CCPC) investigate the high level of motor insurance; this is now happening. I have also proposed that low income earners get financial support with the cost of their motor insurance while the Government implements the action plan to reduce the cost of insurance.”

“As I have said in the Dail, there is little point in reducing the Universal Social Charge, if a multiple of the reduction in USC, is being taken back by increased Insurance costs. The Government needs to accelerate implementation of the recommendations of the Cost of Insurance Working Group, as it is now clear the industry’s claims in relation to the rising cost of insurance do not stand up to scrutiny. The new Minister responsible for the implementation, Minister D’Arcy, needs to make this his main priority” concluded Deputy O’Rourke.

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