Enterprise insurance prices by 15% regardless of reform – Survey – RTE.ie
A new survey found that insurance costs for businesses and volunteer groups continue to rise despite the reduction in the value of certain personal injury premiums introduced earlier this year.
The Alliance for Insurance Reform says the cost of renewing insurance has increased by an average of 15% recently, despite changes made by the Justice Council in April.
Since the new Personal Injury Directive came into force, the organization has been conducting an ongoing survey of insurance costs, to which more than 380 companies have responded.
While respondents reported that home auto insurance renewals decreased by an average of 10%, there were significant increases in commercial policy fees.
Homecare companies saw the largest increases in premiums, up 122%, while nursing home insurance costs rose 35%.
The results also show that hospitality rewards increased by 9%, although many providers were operating at reduced capacity or closed for much of the period.
A related survey of 74 members by the umbrella organization for the community, volunteering and charity sectors, The Wheel, found that nearly half of the members increased their liability premiums by more than 10%.
Last week, the Personal Injuries Assessment Board announced that the average awards have declined 40% year over year since the new guidelines went into effect.
But the alliance claims the benefit of this as well as a reduction in liability claims related to personal injury over the past decade, the entry into force of the perjury law, the opening of the Garda Insurance Fraud Office and greatly reduced claims over the past two years due to less economic activity not yet passed on to customers.
"Everything is being done to provide affordable insurance," said Tracy Sheridan, owner of Kidspace Play Centers and director of the Alliance.
"And yet we are still seeing rising premiums."
The alliance has urged the government to take urgent action to increase competition by bringing more underwriters to the market.
She also claims that a number of other reforms need to be carried out, including a reorientation of due diligence, a reform of the PIAB and the creation of a public fraud database.
Last week, the Tánaiste said he expected the decline in personal injury premiums to be reflected in reduced premiums for individuals, businesses and volunteer groups.
He added that the government will continue with that insurance Industry to make sure it does.
Insurance Ireland said last week that it continues to strongly support the insurance reform action plan and believes that a more stable sector created by government reform will reduce market volatility and bring more security to both customers and insurers.