Sinn Féin spokesperson on Finance, Pearse Doherty TD, has responded to today’s Motor Insurance Report by the Central Bank.

The Donegal TD said the report made clear that the insurance industry is not passing on savings brought about by reduced claims costs to consumers and small businesses.

Deputy said that his legislation, the Judicial Council (Amendment) Bill, would hold the industry to account and apply downward pressure on insurance premiums.

Teachta Doherty said:

“Today’s report by the Central Bank makes clear that the insurance industry continues to rip off consumers and small businesses.

“It is now three years since the Personal Injuries Guidelines came into effect.

“Despite these new guidelines reducing the cost of claims for insurers by up to 41 percent across certain channels, premiums for public and employer liability increased by 8 percent in 2022.

“In the past decade, the average premium for a package policy has increased by 48 percent.

“Last year alone, the insurance industry recorded profits across public and employer liability of €176 million or 14% – the highest since 2010.

“This industry continues to record bonanza profits, but it is clear that instead of passing on the substantial savings made from reduced claim costs to customers in full, insurance companies are pocketing the savings to bolster their profits.

“The purpose of reforms such as the Personal Injuries Guidelines was to deliver reduced prices for customers and small businesses, not increase industry profitability.

“My legislation, the Judicial Council (Amendment) Bill in 2021, would require the insurance industry to report to the Central Bank detailing how it has or hasn’t passed on these savings to customers – euro for euro.

“This would allow the Dáil to hold the industry to account and apply downward pressure on prices.

“Small businesses and voluntary groups throughout the State are being ripped off by the insurance industry, threatening their very viability.

“It is high time that the insurance industry put consumers and small businesses first and slashed insurance costs.”