Insurance costs threaten retailers
A survey has shown that the average cost of cover has risen by 50%, with some policies jumping by more than 70%.
RGDATA, which represents thousands of retailers across the country, has called for the immediate introduction of the Personal Injuries Assessment Board.
Director Ailish Forde said the increases were unprecedented and unwarranted and had cast a serious doubt over the future viability of many retail premises.
A large majority of the 500 retailers surveyed believe lack of competition in the insurance market was contributing to the soaring costs.
But the Irish Insurance Federation defended the industry yesterday with officials claiming its members are making huge losses in the most contentious areas, public liability and motor cover.
Public relations manager Martin Long said federation members in 2000 lost 130m in the motor insurance market and 30m in public liability.
The federation supports the early introduction of an assessment board and blamed the legal profession which collects an estimated 40% of all awards for blocking reform.
"The Government should established the personal injuries board," he said.
"We support that and call on the legal profession to see the light, come on board and support a more cost effective way of dealing with claims. The insurance is losing in money and in image terms."
The survey revealed that 98% of retailers believe the Government is not doing enough to control insurance costs which RGDATA claims is threatening the existence of its members.
Conducted in the second week of July, the survey found 71% said their insurance costs had increased this year, with 28% experiencing increases of over 70%. The average increase was 43%.
Ms Forde said: "If this situation is not taken in hand, costs will continue to escalate to such an extent that insurance will become a priceless commodity."
