An increase in prices of 42% from 2009 to 2018 represents a 4% increase year-on-year...hardly a Rip-Off!Fine report but I don't really get it. Insurance companies enjoying 9% profit margin. OK. Car Insurance premiums higher than should be.
And what about our very own Competition and Consumer Protection Comsission? How come it took the EU to investigate? Is the CCPC yet another waste-of-space Quango?Are they saying that the insurance market is operating a cartel when it comes to pricing? Well that's illegal so what are the Central Bank going to do about it?
The EU already announced an investigation into whether a cartel is operating so sorry if I am not exactly blown over by the report.
Exactly!The main problem is with public liability insurance and the business costs. Where is the report on that? We have seen numerous insurance companies leave this market over the past couple years. We have seen businesses and social clubs etc often struggle to get any cover apart from specialist UK companies. We have seen rising premiums. We have seen businesses close and events cancelled. I would have thought a report into that section of the market would be much more urgent than car insurance.
Yes, no inflation and low interest rates are why rates are going up.According to CSO sourced figures published on RTE, the average annual inflation rate over the same period was 0.01%
Inflation figures
Report on the Cost of Employer and Public Liability Insurance
I haven't read it, but may be of interest.
Yes, I suggested that exact point in another thread about insurance premiums,
"Aren't insurance companies required by law to keep significant amounts of their capital reserves in government bonds? The same bonds that are yielding negative interest rates? Could this be a factor in driving premium rates higher. In other words, a bail-in."
That's an interesting angle, but if that is the reason why don't the insurance companies say that when they are up in front of Oireachtas committees?
If they are losing money then they have to increase premiums and cut costs. The owners of the company (the pensioners who own the pension funds who own the shares) are not a source of revenue.if you are losing money, why are policy holders taking the hit and not shareholders?
If they are losing money then they have to increase premiums and cut costs. The owners of the company (the pensioners who own the pension funds who own the shares) are not a source of revenue.
Absolutely. While dishonest lawyers and dishonest doctors are certainly helping to defraud insurance companies that is not the main reason prices are going up.But critically, if they are losing money, and there is significant evidence to suggest that that is the case, then this more explains the increase in premiums rather than costs and frequency of claims which have fallen.
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