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INSURANCE COMPANIES PAID out more money on claims in 2011 and 2012 than they did in 2014, according to new figures released in the Dáil.
This is despite repeated claims from the industry that the increased number and cost of claims are behind massive insurance premium hikes in the last two years, Fianna Fáil finance spokesman Michael McGrath said today.
McGrath requested information relating to the total amount insurance companies paid out in claims – as reported to the Central Bank – between 2011 and 2015.
In a written response, Finance Minister Michael Noonan said the figures relating to 2015 are still being compiled.
However, the available figures showed insurance companies paid out €1.01 billion in 2014. This is less than the €1.5 billion paid out in 2011 and €1.06 billion paid in 2012. Just over €987 million was paid out in 2013.
McGrath said the figures show the amount paid out in claims in 2014 was 36% less than the amount paid out in 2011.
“While we do not yet have figures for the amount paid out on claims in 2015, the data to the end of 2014 does not substantiate the assertion by the industry that motor insurance claims are the main reason behind rocketing premiums,” he said.
Task force call
McGrath reiterated his call for a task force to be set up to investigate the increase in premiums.
Some customers have seen their car insurance costs jump by up to 60% in the last two years and by a third this year alone.
IncreaseIns of €200 or €300 are not uncommon and younger drivers and those with older vehicles are affected the most.
Escalating premiums are a major financial problem for private motorists and for thousands of businesses across the country, McGrath said.
“Motorists are now typically paying several hundred euro more in their annual premium than they were in 2014,” he said.
We strongly believe that a new task force, along the lines of previously successful Motor Insurance Advisory Board, needs to be established to identify the real reasons why premiums are rising at an unsustainable rate and to make recommendations to deal with the problem.
The Motor Insurance Advisory Board was first established in the 1990s when motor insurance costs rose by 50% over seven years. It helped lower costs by 40%.
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Greed that’s all that is behind the increases
Yip more gouging with government complicity.
All the profits get rolled up into a multinational figure, you can be sure we’re a golden goose with all these service companies.
It’s not greed , it’s good business. Aim for €300 increase and get €200 and the gobsh#tes will be happy they have only paid €200
And lawyers, trust me I know all about it. €3500 per hour for senior council, 6 of them appointed, by the insurance company. Bull on the claims, trying to shift blame to joe public. Total böllox
Obviously pay outs are not the cause… All insurance should be provided by the state it’s totally disgusting that so many people are employed by these companies..
So in short, the insurance sector is a nest of lying fkrs out to regain what they lost in the crash to beef up the capital reserves again.
Nothing but nothing from official or corporate Ireland should ever be believed.
Ff are the party that sold our sovereignty ff are the party that converted 64 billion private debt to public debt ff are the party that made Ireland vote lisbon twice more jobs they said ff are the party that blames the eu for all our problems so lets get the fook out of the eu that way ff fg wont be able to blame the eu anymore.Ff fg haven’t got the balls or mind set to take on the eu all they are is yes men.a pack of backward gombeens that even let people vote on the 8th in case they up set the church
Rip off Ireland is alive and kicking in 2016
There’s enough tax being paid to the public sector without the private sector sticking their oar in
No matter what kind of prices comes up in the private sector Noonan says he cannot interfere. Despite FF and all their faults in the past they are the only one’s to keep rising prices on the agenda if they can get a cap on the waste and manage to prove what they are on about with the Insurance companies FF will have earned my vote in the next GE
You’re easily bought alan. Motor insurance is to the fore because of non political action groups like ireland underground. Its sickening that anyone could consider voting for such a gombeen, sniveling party who gave us Haughey, Bertie, Cowen et al and cost millions in tribunals
I think Mc Grath has slowly evolved into Michael Noonan, after what has been published in the examiner he is a wolf in sheeps clothing.
Well then you’re a sucker for punishment after what FF did to this country.
It’s gone to a stage now where you’re working, to run a car, to get to work, to run a car.
Trevor
Why not give up work then? or perhaps is that an exaggeration
Yes, that’s an intelligent solution.
Wouldn’t it be good if we could get cover from European providers, seeing we are in an ‘open’ market…just saying!
It is true that car safety has safety has advanced the last 15 years, and newer cars are somewhat safer. However, indiscriminately targeting all cars over 15 years is wholly unfair and should be stopped. some 15 year old cars are safer than ones that come out today. My own 02 is far safer for children, and crash tests prove this, than my wife’s 15C.
Insurance is not the same as a utility bill, it’s mandated by law and so should be regulated stringently.
The insurance ombudsman is a joke as his decision is not truly binding. The companies sign up voluntarily. Most of the ombudsmen in this county are toothless. Regcom (phone, internet), insurance, consumer,
Ncap ratings for cars in 2002 are not comparable with cars made in 2015 i.e. a 4 star car tested in 2002 if tested in 2015 would probably be 2 or 3 star.
Well then the cars should be judged on a model by model basis, rather than an arbitrary year of manufacture.
So it’s just plain old profiteering then
The figures requested by Noonan and McGrath are published every year in the insurance Blue book
They have been published at the end of every year since PMPA was bailed out by the public who got lumped with an insurance levy in the 80′s.
Funny how cars have gotten much safer over the years but cases of whiplash have gone through the roof.
People on the dole need a holiday!
Peter
Seat belts and airbags can’t negate the change in g force. It stands to reason that whiplash cases would increase as incidents of death decrease.
Got a renewal from Aviva for my pet insurance which has gone way up. When I queried it I was told it was because of the high rise of motoring claims!!!. My lively little Yorkie is exceptionally intelligent he can chase a ball and run round on his two back legs for ages but drive the car………Or don’t think so
CAR…TEL
Move to England and your premium will half. Your car tax will half. Cars themselves are 30% cheaper as there is no VRT. House prices are much less than Dublin.
Only a fool lives in Dublin paying benefits for the rest of the country
Fjordie
And you will live in a country with a population of about 60m contributing to insurance companies
Great!
And to top it all off, we are all afraid to claim for accident when it happens as the premium will double for next year. Let’s be honest if most of us have a minor collision we will pay ourselves to keep the insurance prices down.
Ring up Bank of Ireland, fully comp for under 395… rest of the CAR-Tel were quoting me 800-1100..
open a current acc they’ll drop another 20% off the quote.
Engine size nor year didn’t appear to matter, if it did, I honestly don’t g.a.f.
@ that price I’m happy out..
> 10yr NCB
> 2lt tdi
> no points/previous/ or claims against me.
hope that helped a few shoppers.. :)
Mc Carthy’s insurance in Cork. 320 euro for a ’03 2.5l Jag fully comp and 340 for a ’13 2.0 tdi people carrier fully comp. no points or claims. Got insurance renewal yesterday from Aviva for 462. Can’t complain with any of those prices
Aviva renewal was for home insurance
Great prices, it was a comment on the Journal that tipped me off to call BoI…
….& speaking of home insurance, they said if I took out the car+home they’d drop another 5%..
You got a great deal there Nick, if we could push to get motor tax added at the pumps… that’d be icing.. :)
Dont get insurance,just like youre cultured friends,problem solved
I’m sorry but why are they using 2014 figures to base this on when the high premiums didn’t rise until 2016.
Read the article, the total claims figure for 2015 is being compiled and I’ve no idea how you propose to arrive at a final figure for 2016 seeing as we are only half way through the year.
Why can’t be same insurance rule in Ireland like rest of the world if the car is insured anyone can drive who holds valid driving licence? I don’t understand the ideology behind getting everyone insured individually which increases the money for everyone.
Greed and the fact the insurance companies are recovering cost of their unchallenged pay out’s over the years. A total disgrace of an industry. I firmly believe a database of claimants should be kept to see who’s making claims and hammer them insurance wise not those who don’t have claims on their record. I’ve had dealings with insurance companies and when I ask if there is such a database I’m told no but I’m open to be prove wrong on this point
So justasheedy you think that because someone else causes you to have an accident and causes you harm or loss and you claim from them you should have to pay extra to get insurance? That’s just crazy. Could you imagine your next renewal?
The database is called insurance link, has been in use for years. Nobody in an insurance company told you it didn’t exist.
It is the shareholders that need the money.
I am claim free for 18 years. My premium went from €387 to €587
Min was around the €300 mark 3 years ago. Same company, same car and i still have my no claims bonus, over 10 years now. This year they quoted me €963
My car insurance is due for renewal at the end of June and still no renewal notice.Ive always had fully comp, but if the premium is too high this year, I will ask for just third party.Whats the bet I won’t get it because they won’t offer it as a broker, because they won’t make much commission out of that.
@Geoff, call BoI… fully comp below 500… 3rd prty & no claims bonus protection about 50 euro less.. open a current acc post quote.. they’ll give you a ref #.. call back and they’ll drop another 20%.. ;) oh and a comment above recommended Mc Carthy’s insurance in Cork, offering even better prices.. shop around, ignore the hype… :)
I already have an account with BOI, might as well ask them for a quote then
I don’t remember many politicians sticking there head out when an Insurance companies were offering cover for €200 a few years ago, it cost them €500million. Below cost selling is part of the reason it’s in the mess it is, also no political will to tackle the subject then or now. By the way all the Insurance companies are European/American, so you can forget about new markets, there here already,
What about people thinking of moving back to Ireland (who have not lived in the UK), recently saw an article about an Irish guy who lived in France for 10 years and moved back to Ireland, most insurance companies would not even make him an offer and he was finally quoted 2500 annually for cover. It is a total scam…..
Yeah we know it – if you want young entrepreneurs to succeed they have ti be mobile – even a scooter for petes sake
You are also paying for every insurance company gone out of business.
2015 premise are based on a guess of 2015 claims ( plus expenses,tax, profit solvency requirements etc)
2015 claims are not know in advance so get are guesses based on historic claims eg 2005-2015. High payouts on 2014 therefore can and do lead to high premiums now.
GREED…
And why did he have to ask the central bank for this information disgraceful.
Ben, the central bank holds this info provided by insurers. What is disgraceful exactly
I wonder how many senior department employees and politicians are in bed with the insurance hob knobs. Being a politican is akin to the gombeen man. Essentials at any cost.
The Revenue Commissioners should impose a special high rate of tax on any premiums that Insurance companies receive above a certain figure..
Mark
And do you not think that insurance premiums will be increased to reflect the higher tax? Surely that will just mean higher premiums
I was €900 last year after being away for a few years on a 2 litre & got it for €600 this year for a newer motor same litre. Maybe I’ll get an ass whipping next year.
Where art thou the Free Market?
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Lahore786
What was suspected all along they are ripping us of with high prices
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