1 Less Claims But Higher Premiums - Compensation
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Fewer Claims But Higher Premiums – Compensation

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Compo Culture or Insurance Scam – Personal Injury Claims

The insurance industry in Ireland has been proclaiming for a long time that compensation claims pay-outs are too large in order to justify their exorbitant premiums. They also maintain that exaggerated and fraudulent claims add significantly to the cost of motor and business insurance. The Legal profession have always maintained that the vast majority of claims are by no means exaggerated or fraudulent but are entirely genuine claims of accident victims.

The Compo Culture – Not To Blame For Increased Insurance Premiums

According to High Court Judge Mr. Kevin Cross “The insurance industry is being fundamentally dishonest by claiming that our ‘compo culture’ is to blame for a rise in insurance premiums”. Judge Cross’s comments were endorsed by the Director General of the Law Society Ken Murphy who added the claim that ‘compo culture’ and fraudulent claims were responsible for the rise in insurance premiums was just incredible. Minster for Justice Charlie Flanagan was also highly sceptical of the assertions of the insurance industry. Minister Michael Darcy also spoke of his low level of trust in insurance companies.

Insurance Premiums Increase By 42% While Accident Claims Fall By 2.5%

The Report from the Central Bank December 2019 highlights that the cost of motor insurance claims fell by 2.5% between 2009-2018 but premiums rose by 42% in the same period. Even more remarkably the Report found that while the average cost of claims per policy over the last 5 years rose by 14%, average premiums rose by 62%.

9% Operating Profit For Insurance Industry In 2019

The report also revealed that the insurance industry in Ireland generated an average operating profit of 9% last year, nearly twice the level of profitability in the UK.

3 Major Ongoing Enquiries Into The Insurance Industry In Ireland:-

  1. The European Commission is investigating suspected breaches of EU competition Law
  2. The Competition and Consumer Protection Commission is investigating other suspected anti-competitive practices
  3. The Central Bank has been investigating differential pricings.

Irish Insurance Industry – Profits €227 Million In 1 Year

The 17 general insurers in the Irish market made operating profits of €227 million in 2017, the latest date for which data is available. During the years 2013-2016 the level of increase in motor insurance premiums was a whopping 70% despite the fact that levels of damages for injuries are falling!

Our Team at Synnott Lawline will fight your corner. We are at your service. Contact us by phone, or Email.