Business premium hikes of 24% linked to long period of weak profitability for insurers 

For all types of such policies, including employers' insurance, public liability, and commercial property insurance, the overall average premium had increased by 4% between 2009 and 2019

File Picture: Leah Farrell

A new report showing the cost of premiums for business liability insurance used by a wide range businesses -- including the smallest of shops to the largest of factories -- had climbed 24% in recent years will help inform public and legislators, the Central Bank said.

However, the regulator said the price hikes followed a number of years when premiums fell and "can be quite well explained" by the regular profit-and-loss cycles in the insurance industry and reflect a period of very weak profitability in recent years. The era of low interest rates and weak investment returns for insurers might continue to weigh for some time, the Central Bank said.