According to a recent report from the Injuries Resolution Board, Brian Hanley of the Alliance for Insurance Reform has highlighted the ongoing rise in insurance industry profits at a time when claims are down, reports Breaking News.
According to the report’s data, following the implementation of judicial rules on rewards in 2021, the number and overall value of personal injury claims have drastically decreased.
According to fresh data on petitions to the Injuries Resolution Board, claim numbers decreased by 40% between 2019—the year before to the pandemic—and 2023, reports Breaking News.
Businesses, sports teams, and nonprofit organisations are presently dealing with crushing prices, Mr. Hanley told RTÉ radio’s Morning Ireland, adding that the rise in insurance industry profits coincides with a decline in claims. Mr. Hanley urged the incoming administration to address the matter.
“We need them to act on our behalf. We have seen no meaningful or sustained reductions, certainly nothing reflective of the size of the savings being made or the reduction in the volume of claims,” reports Breaking News.
According to the Central Bank’s most recent report, premiums grew by an average of 8% during a period when claim numbers were declining, but the insurer profit margin increased by 55% during the same 12-month period.
Moyagh Murdock, the CEO of Insurance Ireland, told RTÉ that she was pleased with the study and its conclusions.
She also mentioned that she was wary of the report’s time frame because it coincided with the COVID-19 lockdowns, which resulted in limited access for numerous firms.
“The last report from the Central Bank showed that this (insurance cover) was largely loss making. And that’s the problem. We cannot attract new entrants into the market when there is a loss making situation. We have only seen it recently return to a nominal profit of 0.5 percent. So I don’t accept that there has been significant profits at all and not unless there is some sort of a profitability expectation there we will not attract new competition,” reports Breaking News.
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