Deloitte survey says rising claims costs must be passed on

A Deloitte survey found 85% of motor insurers expect to raise Irish premiums next year, with half 5%-10%, but one-in-five by more than 10%, The Irish Examiner reports

Claims incurred in the last nine months alone have exceeded all of the claims in the preceding five years.

Meanwhile, motor insurers saw their profits drop sharply to €35.1m last year, just under a tenth of what they were in 2007. The cost of claims climbed 22% to €1.1bn.

Passing in the costs

"While consumers may balk at premium increases, it is very likely that insurance companies will pass on the rising cost of claims to customers," partner with financial services at Deloitte Glenn Gillard said.

"Motor insurance has been one of the most competitively priced financial products available in recent years, leaving little room for companies to absorb additional costs.