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Companies say liability insurance has increased 16 percent over the past year despite reforms

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Liability insurance premiums rose 16 percent last year despite government cost-cutting guidelines.

According to a survey by the Alliance for Insurance Reform, 42 percent of companies say high insurance costs now threaten their future.

There was good news on personal car premiums, which have fallen 9 percent since May 2021.

But nearly a third of companies (29 percent) said insurers have increased their deductibles – the portion of a claim paid by policyholders – and added more “exclusions” to their terms over the past year, effectively reducing their coverage.

Peter Boland, director of the Alliance, said higher deductibles and more exclusions are “stealth increases” that shifted risk from the insurer to the policyholder.

“Personal injury is by far the largest component of insurance costs,” said Peter Boland, director of the Alliance for Insurance Reform.

“Insurers are simply not passing on the benefits of recent reforms to liability policyholders. Other reforms that would affect liability premiums are not coming fast enough either.”

Just under 40 percent of companies said high costs are preventing their business from growing, while just over 30 percent said it prevents them from offering additional services.

Of the nearly 1,000 companies surveyed, 90 percent say the government is not doing enough to address the problem.

“In order to restore policyholder confidence in the process, the Government must do everything in its power to ensure incumbent insurers pass on the benefits of the reforms,” ​​said Eoin McCambridge, managing director of McCambridge’s of Galway and a director of the alliance.

“The government is not doing enough to address the problem of insurance costs. You need to act faster to bring additional competition to the market. You must accelerate promised reforms.”

Business owners want changes to the “due diligence” principle, which McCambridge says makes companies’ responsibility for customers “absolute”.

“There’s no thought of personal responsibility,” McCambridge said.

Companies are also calling for faster reform of the Personal Injuries Assessment Board (PIAB), which recommends payouts.

The government introduced new court guidelines on fair compensation for insurance claims in April last year.

Average injury compensation fell 40 percent in the five months after the guidelines were introduced, PIAB said, putting pressure on insurers to slash premiums.

https://www.independent.ie/business/personal-finance/insurance/firms-say-liability-insurance-rose-16pc-last-year-despite-reforms-41573637.html Companies say liability insurance has increased 16 percent over the past year despite reforms

Fry Electronics Team

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