Living cost falls so insurers accused of “crucifying” customers
Insurance premiums in Ireland have risen 25% this year despite the biggest fall in the cost of living for 75 years, leading to accusations that insurers are “crucifying” customers, the Irish Independent reports
Central Statistics Office figures show overall prices fell by almost 5% over the past year, the biggest fall on record since 1933. This included the cost of rebuilding homes.
Premiums rose
- Home insurance rose by 25%..
- Car insurance rose by 12.5%
- Health insurance rose by 21%
The Consumers Association of Ireland (CAI) described the insurance hikes as "totally outrageous". It called on the Enterprise Minister, the Competition Authority and the Dail committee on economic regulatory affairs to intervene.
The National Consumer Agency said it was in discussions with the Financial Regulator about carrying out a probe into why premiums had increased so much.
Insurers respond
The Irish Insurance Federation (IIF) said home insurance claims costs had risen 56% last year due to floods last August. Car insurance claims costs had risen by 24%, as crashes led to more damage claims.
"The main thing is that premiums are dictated by the cost of meeting claims, so if those rise, so do premiums," said IIF non-life manager Michael Horan.
