There is no doubt among consumers that insurance prices are increasing , the CSO have reported that insurance premiums have increased by, on average, 24% since August 2014. There are a number of reasons for the increasing prices of insurance premiums.
- The numbers of claims due to accidents occurring on Irish roads are rising.
It has been reported that there are higher volumes of traffic using Irish roads as a result of an upturn in the economy. The CSO have reported a 34.7% increase in vehicles licensed for the first time in January 2016 bactrimsale.com compared to January 2015.
- Low Premiums have resulted in increased losses for insurers over the last couple of years.
Intense competition in the insurance market has forced insurers to engage in a price war over the last few years resulting in poor yields. In an effort to return to profitability insurers have had to increase their premiums.
- Insurance Fraud is on the rise
Insurance fraud is driving premiums upwards. Insurance fraud is occurring under three categories.
- Innocent fraud due to misrepresentation of the facts. Innocent drivers can become victims of insurance fraud if they are involved in an accident whereby other parties either stage the accident or give untruthful evidence of how the accident occurred and the injuries they sustained as a result or if the other party involved in a genuine accident exaggerate injury claims.
- Deliberate fraud occurs when a driver deliberately lies about their age, their drivers licence, penalty point’s information or if they amend receipts.
- Criminal fraud is usually a staged accident which is planned ahead and carried out by a criminal gang.
- Uninsured vehicles are driving insurance upwards.
Uninsured vehicles can add up €40 or €50 to a motor insurance policy. Under Irish law motorists are required to have insurance, third party cover is the minimum requirement.
- As a result of the recent MIBI (Motor Insurance Bureau of Ireland) appeal on Setanta insurance liability insurers are liable for Setanta losses of approx. €90m which in turn is driving insurance prices up.
- Increasing costs of Financial Services Regulation
Insurance in Ireland is a highly regulated financial services industry, all insurers operating within Ireland are bound to adhere to existing, expected and potential legislation and regulation that apply to the financial sector in general and to insurance companies in particular. Increasing costs associated with this regulation is being passed on to consumers through higher premiums and a 5% government levy.
- Court Settlement and associated legal costs are increasing.
The following table shows that court settlements for personal injury claims are increasing.
High Court Circuit Court
2014: 304,353 13,550
2013: 227,321 11,941
2012: 252,146 11,452
2011: 215,730 12,362
2010: 219,303 12,662
Source: Courts Service Annual Reports 2010-2014.
It has been reported that there are a number of contributing factors for the increases including higher settlement expectations from claimants driven by the legal profession, inconsistency in court settlement awards, the injuries board award process is experiencing increased legal challenges due to the fact that a greater number of awards are bnot being accepted by the injured parties.
How Munstergroup Insurance can help to keep your insurance prices down
Munstergroup is an insurance broker working with over 50 insurance companies our aim is to get the right cover at the right price for our customers. Munstergroup can offer our customers more choice with access to insurance companies that do not normally operate within the consumer market. As a broker, Munstergroup can offer you the best non-biased advice for any queries you may have. We can help you get the best cover at the best price for motor, home, business, farm, health and life and pensions insurance.