Irish Examiner view: We need to be able to trust insurers

Reducing high costs of insurance

The cost of claims has fallen to 59% of motor premiums from a peak of 92% in 2014, yet any reduction in costs to consumers has been piecemeal and inadequate.

Two cheers for the Government’s new reform plan aimed at bringing down the cost of insurance. Not three because, in one major respect, the changes are somewhat one-sided.

At a press conference to launch it yesterday, Enterprise Minister Leo Varadkar acknowledged that insurance costs in Ireland are too high for consumers, businesses, and community organisations. Yet the plan fails to acknowledge the contribution to those costs made by the huge profits enjoyed by insurance companies in Ireland. According to Central Bank figures, insurers operating here saw profits on motor coverage go up by nine percent to €142m last year.