FBD warns insurance costs to rise

Insurance giant FBD has returned to profit on a pre-tax basis for the first time in four years, but has warned that insurance costs for customers will be higher this year.

Speaking yesterday, FBD chief executive Andrew Langford said that the Government’s 2% levy on all non-health insurance customers, to cover the collapse of Quinn Insurance, will add to costs this year and is likely to affect prices for the next 10 years or so.

He added: “Premiums are, ultimately, driven by claims costs and where we have seen positive trends in claims, we have reduced rates ourselves towards the end of 2011 — especially on car insurance; and we’ll continue to do that, where possible.”