We don't have to remain a nation of fools

IF the epigram “a fool and his money is soon parted” be true, then we are a nation of fools.

Rip-off Ireland is alive and well. The most fleeting analysis of the retail and services sectors will show the consumer is not king but is preyed upon by knaves.

The worst part of this is that the rip-off merchants have an army of dim-witted accomplices, a vast array of conspirators who facilitate the culture of greed. Who are these terrible people helping the overchargers? The shoppers of Ireland, that’s who; you and me. Many scoffed at Tánaiste Mary Harney’s advice to people fed up at being ripped off to shop around. Say what you want about the PD leader, in this case she is on the ball.

Let’s take a case in point. This week, the fledgling Irish Financial Services Regulatory Authority (IFSRA) published its first independent Home Insurance Cost Survey (www.ifsra.ie), which proved beyond doubt that consumers haven’t got a clue when it comes to getting value for money and the best deal possible. I am not talking about saving a few euro here or there. I am talking about savings of hundreds of euro on an essential product for all homeowners and mandatory for those with mortgages.

Irish consumers are easy prey for the wolves. We have one of the most open and successful market economies on the globe. Yet, when it comes down to taking advantage of that fact, most of us are either too lazy, too stupid or simply too gullible to go out there and get the best deal possible.

IFSRA performed a great public service with their home insurance survey. In essence The survey showed that by shopping around home owners could halve the cost of their home insurance, saving up to €340 on one bill. The polite people at IFSRA presented their findings in a manner which did not infuriate the insurance industry. The lads in Dame Street told consumers they could cut premia in half by shopping around. The corollary to this is: some insurance companies are ripping customers off by charging double.

From IFSRA’s vantage point you can cut 50% off the cost of home insurance. An equally valid view is that some insurance companies charge 100% more than their rivals. Companies, such as Alliance and Ecclesiastical, that charge double their rivals for similar insurance cover could not do so if people refused to buy these products. No customers, no sales.

The survey also blew a hole in the myth that there is no competition among insurers. There is, big time. The problem is that people are not exploiting the situation by simply shopping around.

If fewer whiners rang the likes of the admirable Joe Duffy’s RTÉ 1 programme, it would allow that man tackle the really serious issues. If instead they rang around looking for bargains, they would have more cash in their pockets. We love whingeing but don’t follow through by doing something about which really annoys us.

Taking out insurance is not like getting married: you can change your insurance partner on a regular basis and should by seeking out better deals. The insurance industry is making a fortune because people are not looking for the best deal. Most consumers simply pay up when the bill comes in. Those people deserve what they get, ie ripped-off.

The benefits to the economy would be enormous if consumers sought out the best deals all the time. Money wasted on overpaying for goods and services would be freed-up for other purchases, with the knock-on effect of creating more jobs.

We appear to be on the cusp of a culture change; let’s hope so. We are getting more demanding, we want better standards and value for money and we are willing to ask for them and rightly so.

That we should demand good service and value for money seems self-evident but we simply didn’t. Our collective ambivalence let the purveyors of shoddy goods and services, and the rip-off merchants off-the-hook.

I know it’s a hard thing to do, a very hard thing to do, but take Mary Harney’s advice - shop around - and don’t be a fool all your life.