Sinn Féin spokesperson on Finance, Pearse Doherty, has called out insurance companies for pocketing ‘grotesque’ profits.
The Donegal TD said premiums rise relentlessly year after year hurting sports clubs, community groups and local businesses.
The National Claims Information Database report shows 13% profit margin for public liability insurance, employer insurance and commercial property insurance.
Deputy Doherty said this 13% profit margins are far in excess of what insurance companies normally make across the world.
“Insurance company executives have repeatedly told me on the finance committee that they target profit margins of 4 to 6%, and that the rest is passed on to customers,” he said.
“Yet, this is the third consecutive year of profit margins of at least 10%. It is now beyond clear that these companies are being allowed to take advantage of their market position.
“Premiums are up 56% over the last 10 years. That is an increase of over €1,000 on the average premium. At the same time, the loss-ratio – the key industry measure of how much of premium goes towards covering the cost of claims – has fallen from 80% to 53%.
“It is no mystery how these bumper profits are being made. These profits are being made off the back of community groups, sports clubs, and businesses.”
These high insurance costs, Deputy Doherty added, weigh like ‘a dead hand’ on local communities and economies.
“Many other organisations and small businesses that make up our communities are struggling to find affordable insurance despite the low level of claims.
“The reality is that these companies operate with impunity. The government has no answers and has no interest in taking action.
“The government has stood by for the last few years and allowed reforms to turn into profits for insurance companies rather than delivering lower premium payments.
“I am calling on all government TDs to back my legislation that will mandate insurance companies to demonstrate how they are passing savings to customers to protect the public from rip off insurance costs.”
