Sinn Féin Finance Spokesperson Pearse Doherty TD has called on FBD Insurance to outline a schedule of premium reductions for its consumers, as their pre-tax profits more than doubled to €113 million for the year ending 2019. The end of year results confirmed that the company’s profits soared as the cost of claims fell.

Deputy Doherty has written to FBD to discuss a schedule of premium reductions for consumers in the coming years.

Speaking today, Deputy Doherty said:

“Today’s end-of-year results for FBD lay bare the price-gouging activities of the insurance industry, as it returns to peak profitability while consumers continue to pay extortionate premiums.

“Pre-tax profits for 2019 at FBD have increased by 125%, while at the same time net claims incurred have reduced by 19%. The ‘compo-culture’ line that was pedalled by the industry, Fine Gael and Fianna Fáil to excuse rip-off premiums no longer stands up to scrutiny.

“Sinn Féin have repeatedly held the industry to account for misinforming the public and ripping off their consumers, while others have done nothing.

“Our analysis of the insurance industry was confirmed by the Central Bank report which showed that since 2009, the cost of claims per insurance policy has gone down by over 2 percent while the average motor insurance premium has gone up by a staggering 42 percent.

“These results are further confirmation that claims continue to fall, with the industry enjoying peak profitability.

“FBD now plan to reward their shareholders instead of their customers, despite the fact that that their profits are build on the back of premiums paid by their customers.

“After enduring rip-off premiums by an industry that is now enjoying soaring profits, it is time for consumers to be rewarded with a reduction in premiums.

“I have written to FBD, requesting a meeting to discuss an agreed schedule of premium reductions for consumers over the coming years, in line with reforms in the sector and increased profits for the industry.

“We expect this trend in rising profits to be replicated across the sector, and Sinn Féin will engage with all companies in the industry to demand a schedule of premium reductions for consumers.

“The previous Government failed to hold the insurance industry to account. In Government, Sinn Féin will ensure that the industry is held to account and that consumers are given a break.”