Insurance costs soaring: Compo culture out of control

Everyone involved in our insurance industry, everyone from the salesperson to the senior counsel determined to get “justice” for a client that imagines themselves the victim of grievous negligence, blames someone else in the process for our runaway insurance costs.

Courts make awards that seem more to do with a lotto fantasy than they have about righting a wrong.

No-foal-no-fee legal speculators drive expectations and, ultimately, insurance premiums.

All this is set against the certainty that premiums go only in one direction — especially if they are levied to make up losses incurred by collapsing insurance providers.

Strangely, when insurance companies make profits there is no levy to balance that involuntary largesse.

The Oireachtas Finance Committee heard yesterday that the GAA’s insurance costs doubled in five years.

Donegal Cooperative Livestock Mart told the committee that “shocking” rises will close marts in the next 12 months.

The Association of Irish Festivals and Events, said 75 festivals had collapsed in 36 months because of escalating insurance costs.

It must be accepted that a person hurt by another’s neglect is entitled to compensation but that should not trigger what was described yesterday as “legal extortion”.

Once again the image the legal professions and the insurance sector have of themselves is seen to be a minority view.

Government action is needed to protect consumers and curb this fleecing.