Businesses claim insurance sector 'a threat' to their survival with rising premiums

Businesses claim insurance sector 'a threat' to their survival with rising premiums

There is a warning that businesses will be forced to close and jobs will be lost unless action is taken to bring down rising insurance premiums.

The Alliance for Insurance Reform is calling on the Government and industry to do more.

Eoin McCambridge employes 60 people at McCambridges food hall and restaurant in Galway.

He has seen the cost of his insurance jump from €17,000 in 2014 to €102,000 last year.

He said: "It's not realistic for us to keep paying these kind of increases. We reckon that in three years' time, if it keeps going, that we'll close our doors.

"So there is a really serious risk to our business and we've been in business since 1925.

"To be in a position where y ou are saying that your insurance premiums are going to drive you out of business seems crazy."

Peter Boland is spokesperson with the Alliance for Insurance Reform, a new organisation representing small and medium size businesses, charities and voluntary organisations covering more than 620,000 employees.

He said: "Insurance should be a service to society, whether it's business or the voluntary sector.

"In fact it's the opposite now, it's become a threat to the survival of the businesses and the voluntary bodies that it is supposed to be supporting."

The alliance is calling on insurance companies and Government to do more, saying there needs to be more transparency on how premiums are calculated.

The body also wants an end to what it describes as "exaggerated" or "misleading" claims being pursued and settled.

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