Insurance companies continue to ‘fleece’ consumers - Clarke

The insurance industry has been accused of ripping of customers.

That's according to Deputy Sorca Clarke, who was commenting after the findings of a recent insurance industry survey conducted by Sinn Féin finance spokesperson Pearse Doherty were published by the party.

Sinn Féin says that of the 1,390 respondents, 95 per cent stated that their premium had increased in the past 12 months, while 98 per cent said they had made no claim against their policy in the same period.

“Pearse Doherty’s legislation to strengthen consumer protections in their insurance contracts became law in 2019 and tipped the balance in favour of policyholders.

“Sinn Féin then led a campaign to ban the unfair and discriminatory practice where insurance companies were artificially hiking the premiums of renewing customers.

“But it is clear from the responses to Pearse Doherty’s survey that despite these reforms, the insurance industry is continuing to fail consumers. Prices are too high for workers and families while profits soar.

“Sinn Féin’s legislation, the Judicial Council (Amendment) Bill in 2021, would require the insurance industry to report to the Central Bank detailing how it has or hasn’t passed on these savings to customers – euro for euro.

“This would allow the Dáil to hold the industry to account and apply downward pressure on prices," she said.

Insurance Ireland, the representative organisation for insurance in Ireland, said it rejected the comments made by Deputy Pearse Doherty regarding the motor insurance premiums in Ireland and would argue that the Central Bank’s evidence very strongly points to the fact that insurers have been delivering on their commitment made to pass on the savings arising out of the Agenda for Insurance Reform.

In the first half of 2023, the average written premium on motor insurance rose by only 0.5% to €561, against a backdrop of significant inflation in the rest of the economy, it said, demonstrating the Government’s insurance reform agenda is working and insurers are delivering for consumers. Irish motor insurance customers benefitted by significant decreases from 2017 to 2023. While recent figures from the Central Statistics Office (CSO) show that premiums for motor insurance are increasing due to inflationary pressures, it is important to point to those steep decreases in recent years that flowed from the implementation of the actions under the agenda for insurance reform.

"Today, the average motor premium in Ireland is €670 compared to €1,100 in the UK and Northern Ireland. Most European countries also have higher premiums," it added.