MacManus raises insurance cost questions with EU Competition Authorities
SINN Féin Midlands North West MEP has today written to EU Competition Authorities raising questions about the Irish insurance industry’s refusal to pass on savings made from reduced pay-outs on personal liability claims.
MacManus said: “I have formally written to both EU and national competition authorities raising concerns and asking for an investigation into how the insurance industry can be increasing premiums and making huge profits while claims are going down. This is inexplicable and requires investigation from the Competition authorities.”
“I have raised this issue before with the Commission and believe it now requires an escalation. As we know, the EU imposed on Irish insurers a plan to increase competition in the motor insurance field. It now seems likely that this approach may be required for
It is now three years since the Personal Injuries Guidelines came into effect. Despite these new guidelines reducing the cost of claims for insurers by up to 41 percent across certain channels, premiums for public and employer liability increased by 8 percent in 2022.
In the past decade, the average premium for a package policy has increased by 48 percent.
Last year alone, the insurance industry recorded profits across public and employer liability of €176 million or 14% – the highest since 2010.
“The purpose of reforms such as the Personal Injuries Guidelines was to deliver reduced prices for customers and small businesses, not increase industry profitability.”
“I look forward to hearing back from the authorities on this huge issue for small businesses across Ireland.