Drivers in the country are facing yet another hike in their insurance premiums due to mistakes made by insurance companies, a rise in the number of cars on the roads, and the expensive legal fees demanded by lawyers, among other reasons.
Charlie Weston, personal finance editor with the Irish Independent has a different view, however. He says the main reason for the hikes is the market under-pricing led by RSA.
He said “That company engaged in undercutting everybody else, all the other foolish insurers followed it down and the result of that was a massive accounting scandal at RSA. It had to be bailed out to the tune of €400m by the British parent company.Just years after this happened with Quinn (Insurance) we’ve seen the same thing happen again.”