Car insurance cuts urged as profits soar to €183m
Figures released by the IIF show the industry made €183 million in 2002, while insurance premiums increased by up to 50% in some instances.
The IIF blamed the high cost of insurance on the massive levels of compensation claims, which cost €6.5 billion in the past five years.
However, Consumer Association of Ireland chairman Michael Kilcoyne said the insurance industry was using every opportunity to increase profits and extract more money from drivers.
He said despite repeated promises, insurance premiums continue to rise.
“Penalty points have been in place for 10 months, but the savings are not being passed on to the consumer. We have figures that show that there have been no reductions. In fact, the reverse is true.
“Motor insurance is more expensive now than it was last year. According to our figures, insurance premiums have increased by up to 200% in the past five years.”
While accepting that premiums have increased by double figures in the past two years, IIF chief executive Mike Kemp said last year’s results provided a glimmer of hope for hard-pressed motorists and for the companies operating in the market.
He said the profits, which contrast sharply with cumulative losses of €200m in the previous three years, would pave the way for lower premiums. However, he said the 30% savings promised by the IIF are contingent on the implementation of road safety measures and other key factors contained in the Motor Insurance Advisory Report.
Mr Kemp said the number of road deaths, which fell after the implementation of the penalty points system, were on the increase again.
He reiterated the call for:
* A dedicated traffic corps.
* Random breath testing.
* A full speed-camera programme.
* Immediate legislative reform.
* The Personal Injuries Assessment Board for road traffic claims to be set up immediately.
Mr Kemp said that to cut the cost of car cover, the issue of claims costs would have to be dealt with. Figures produced by the IIF show if 25% was knocked off the cost of total claims dealt with by the country’s 12 motor insurers, the net benefit to the 1.2 million policyholders would be €272.75 on each car insurance policy.
