Motorists to be hit with even higher premiums
Insurer FBD, which made an €85m loss in 2015, warned the industry still had not increased rates sufficiently despite a 31% rise in the cost of motor cover last year.
The spike in premiums — which earlier this year prompted a government review into the industry — seems set to continue, with FBD predicting price hikes on its motor policies of between 10% and 15%.
FBD Holdings’ group chief executive Fiona Muldoon, warned that while a repeat of the 30% increases seen last year is unlikely to be seen in 2016, “hefty increases for motorists” are on the way.
“The cost of claims and all of the ancillary costs associated are affecting everyone in Ireland. Court award levels are at an all-time high. We will work with the industry and the Government to tackle the cost of claims for the benefit of all our customers,” Ms Muldoon said.
Industry experts have claimed, however, that given the surge in costs over the past two years, no further hikes are needed for firms to cover their losses.
Ms Muldoon also flagged “very modest” premium hikes for its farm customers, which she predicted would be less than 5%.
