Profits increase as price of motor premiums fall

The NCID report shows that while the price of motor premiums has fallen since their peak in mid-2018, they remain significantly above the low point recorded in 2013. File picture: Larry Cummins

Motor insurers in Ireland will come under renewed pressure to cut premiums after a Central Bank report detailed the industry increased profits last year.

The National Claims Information Database (NCID) report shows that while the price of motor premiums has fallen since their peak in mid-2018, they remain significantly above the low point recorded in 2013.

The industry collected €1.47bn in motor premiums last year, earning combined profits of €142m, up from €130m in profits in 2018. 

The average earned premium per policy was €676 in 2019. This was 4% lower than in 2018 but 35% higher than in 2009. 

Peter Boland, director of The Alliance for Insurance Reform said the report “lays bare the scale of the greed” that has driven the insurance crisis.

“It is clear from the comprehensive NCID figures that motor insurance premiums have not reduced dramatically in the last two years, contrary to the sample data published by the CSO and used extensively by Government to illustrate progress.”

However, Moyagh Murdock, CEO of Insurance Ireland said there were “positives” in the report.

“Premiums are down year on year by 4% and we have seen an even bigger reduction in the 18-month period,” she said, pointing to a 9% reduction between the second quarter of 2018 and the final quarter of 2019.

While the frequency of claims is reducing, Ms Murdock said the quantum of awards in Ireland is “out of kilter” compared to other markets.

She declined to comment on whether consumers can expect to see premiums fall further, but said it is “welcome” that the report shows premiums have reduced in the last couple of quarters alongside the frequency of claims.

She said the industry is supportive of the need for reform: “You won’t get any pushback from the insurers in that regard."