Loss adjuster estimate force industry to predict premium rise
The Irish Insurance Federation (IIF) warned that all consumers will face higher premiums after loss adjuster Cunningham Lindsey said flood claims would be double last year’s €96m, the Irish Independent reports.
The Consumers' Association of Ireland (CAI) said the floods should not be used as an excuse by insurers to raise premiums.
CAI chief executive Dermot Jewell called for an Oireachtas Committee to check that any increases imposed across the board were justified by the flooding claims costs. "The cost of the flood claims should not be used as an excuse to exploit consumers," he said.
Premiums dictated by costs
The IIF’s Michael Horan said: “Premium levels are dictated by the cost of claims. The value of claims last year was up 56% on the level in 2007." He said insurers had lost €160m on home insurance last year.
Caitriona Somers of Cunningham Lindsey said the costs fo claims rising toc lose to €200m was because of a larger number of commercial claims. Insurance companies were bracing themselves for a rash of claims in the next few days.
Insurer response
Hibernian Aviva said it would give advance payments of up to €1,000 to homeowners and businesses to cover immediate expenses due to the extreme flooding.
Quinn Direct said it would protect the no-claims bonuses of customers making a claim for flood damage if they contacted the insurer by close of business today.
