The government is being ‘taken for a laugh’ as ​​insurance premiums are still rising despite the size and number of claims falling, the group says | Tech Reddy

INSURERS premiums are still rising despite the size and number of claims falling, it has been claimed.

New statistics show that the introduction of payment lines has seen the sums awarded in claims fall by 44 percent in the last two years.

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The Government has introduced injury award guidelines for judges in a bid to curb the rise in premiums in Ireland.

Since then, the average damages paid have fallen from €23,877 in 2020 to €14,786.

The number of claims handled by the Personal Injuries Assessment Board also fell by 18 percent last year.

However, the Alliance for Insurance Reform said today that insurers are taking the Government for a ride because they are not passing on the savings they make to customers.

They said that while the reduction in payments is “reflected in the competitive car insurance market”, liability insurance premiums are actually increasing.

Director Eoin McCambridge said: “From a policyholder perspective, it appears that all the earnings provided have been used to improve underwriter profitability and fund the acquisition frenzy in the insurance broker sector.

“The government must hold insurers to account to ensure that the gains from the Judicial Lines and other reforms are passed on immediately and in full.

“While the government often tells us that they cannot dictate premium prices, the government has enormous soft power over the insurance sector, a sector that needs our government to operate profitably. “.

Minister of State for Trade Promotion, Digital Regulation and Companies Dara Calleary welcomed the reduction in damages.

He added: “The Personal Injury Guidelines were just one measure brought forward under the Government’s Action Plan for Insurance Reform, and I thank PIAB for its continued analysis of premium levels since its introduction in April 2021.

“We have seen in previous reports that the introduction of the Guidelines has had a dampening effect on the acceptance of PIAB assessments.”

Peter Boland of the Alliance for Insurance Reform added: “The challenges of staying open for Irish SMEs, voluntary and community groups, charities and sporting and cultural organizations have never been greater in recent history. of our nation.

“Of all these challenges, the insurance crisis is the closest to being solved by the government.

“Insurers must act in good faith on the progress already made.”