Storms hit insurers and motor rates have bottomed
Irish insurance premiums are set to rise, the Irish Insurance Federation (IIF) has claimed.
Gross written premiums for non-life fell for the fourth successive year to €3.611bn in 2007 (€3.823bn in 2006) despite a rise of more than 4% GDP. Underwriting profit fell from €696.7m in 2006 to €689.9m in 2007, with operating profits (after investment income is taken into account) remaining static at €1070m. Net incurred claims costs were down from €1866m in 2006 to €1724.5m.
Mike Kemp, IIF chief executive, said: “Much of the 2007 business was written at a loss, and this trend has accelerated into 2008 in highly competitive market conditions. However, there are signs that motor insurance premiums, for example, have passed the lowest point in the cycle and are beginning to rise again.”
And he warned: “The non-life market has also been severely impacted by weather losses arising from this August’s storms, costing nearly €100m.”
