IBEC takes on firms on insurance cost claims

EMPLOYERS’ body IBEC has disputed claims by leading insurance firms that insurance costs for businesses have dropped significantly over the past two years.

IBEC director Brendan Butler yesterday claimed employers had not experienced a decrease in insurance premiums as suggested by the industry, apart from some decline in the cost of motor insurance.

Addressing a meeting of the Joint Oireachtas Committee on Enterprise and Small Business yesterday, Mr Butler said: “We have not seen any evidence as yet from our analysis of a reduction in such costs.”

Mr Butler said a recent IBEC survey found insurance costs for business rose by 3.8% in the past year and almost 28% in 2003.

His comments contrasted with presentations at the same meeting by executives of three of Ireland’s largest insurance companies.

Allianz claimed the cost of motor insurance fell by 20% and the cost of commercial liability had fallen by 16% over the past year.

Quinn Direct said premiums across all its products had decreased by 32% over the past two years.

Mr Butler said there was a danger of complacency in the industry after the success of reforms of the insurance market since 2003. But he criticised the Government over its commitment to further reform.

He said it was a concern for employers that the level of contact between Government ministers and IBEC on the issue was no longer the same as three years ago.