Alliance for Insurance Reform says survey finds cost of liability cover still rising

Lobby group warns SMEs can't afford higher premiums

Almost three quarters of businesses and community and sports groups have reported their liability insurance has risen in the past two years, a survey by the Alliance for Insurance Reform said.

Almost three quarters of businesses and community and sports groups have reported their liability insurance has risen in the past two years, a survey by the Alliance for Insurance Reform said.

The study, which received responses from 775 small and medium businesses, sports, community and voluntary groups also found that 67% of policyholders have seen added exclusions, increased excesses or both in recent years. "This essentially means people are now paying more and getting less," the Alliance for Insurance Reform said.

One in five respondents have only one underwriter willing to provide insurance cover, the survey found.

A report by the Injuries Resolution Board report on personal injury claims and awards for 2024, showed personal injury claims are still 35% lower than 2019. Nevertheless 93% of respondents to the Alliance for Insurance Reform survey said they did not believe it was appropriate or necessary for personal injury awards to be increased. Justice Minister Jim O'Callaghan is set to recommend a 17% increase in awards to cabinet in the coming weeks. "The Government risks being seen as ‘completely out of touch’, if it approves an increase in awards that will see insurance premiums skyrocket – do they not know people just can’t afford it?" said Alliance for Insurance Reform board member Flora Crowe. 

"I run a small business like many other people, and the cost of business is already the biggest concern facing us and now the government looks set to make it worse." 

The Alliance for Insurance Reform represented 55,00 members in 47 civic and business organisations across Ireland.