Insurers are urged to explain price hikes

GREATER transparency from the insurance industry is needed when it comes to rapidly rising quotes, according to a leading consumer expert.

Dermott Jewell of the Consumers’ Association of Ireland said insurers need to break down policy quotes so customers can fully see what they are being charged for.

Speaking with the Irish Mail on Sunday, Mr Jewell said: ‘I’ve always asked the question, what exactly are you insuring here, what are you not insuring – break it down. If insurance is to double why is it doubling and what specific level of the insurance is increasing?’

Mr Jewell called for individual risk factors to be broken out in quotes so customers know exactly what they are paying for. ‘To date, there has not been a demand for this level of transparency,’ he said.

‘Ultimately, the Government needs to step in and establish what you can and can’t be charged for in a quote.

‘I think that’s going to come because that’s the only way we’ll get a competitor in who will say that’s a fair market. The absence of anyone wanting to come into the market has to be a concern for government.’

Mr Jewell also said not offering a greater government subsidy for crèches facing closure over the insurance crisis was ‘frightening’.

Minister for Children and Youth Affairs, Katherine Zappone announced on Wednesday that a once-off payment of around €1,500 would be given to each childcare provider to help them deal with extra insurance costs.

A total of €7m will be allocated by Ms Zappone’s Department.

On average, childcare providers are facing a 100% increase in insurance costs on having to move to Allianz. It is now the only insurance company in the country which will cover creches and daycare centres after Ironshore withdrew from the market.

This has left 1,000 crèches facing closure, parents in fear of losing childcare and staff concerned about jobs.

The Taoiseach had initially dismissed the idea of helping the struggling industry.

He said: ‘For the State to wander in blindly and offer to cover the bills of a private company or even a public body, no questions asked, would be entirely reckless.’

Yet, the Government went ahead and made the payment, which was criticised by Fianna Fáil leader Micheál Martin, on Thursday stating: ‘Yesterday it was reckless to give a subvention. Within two hours, it was sensible policy.’

Fine Gael ministers were said to be furious about the bailout.

One said: ‘It left us looking like clowns. Leo says no bailout and then tears into reckless Sinn Féin and hours later Zappone starts rolling out the cash.’

However, Government sources noted that the Taoiseach was told about the bailout on Tuesday evening, prior to the announcement.

‘Transparency is the only way to a fair market’