The rise in insurance premiums against a backdrop of decreasing claims indicates price gouging across the board, according to Social Democrats TD Sinéad Gibney.
Deputy Gibney, the party’s Enterprise, Trade and Employment spokesperson, said:
“What we’re seeing in relation to personal injury claims is that they still remain far below 2019 levels, and the average award is also still significantly lower than a few years ago.
“Despite this, consumers and small businesses are struggling with ever spiralling insurance costs – these increases in premiums can’t be justified.
“We need the government to step in and tackle the price gouging in the insurance sector before more struggling businesses are forced to close their doors.
“Motor insurance premiums have followed a parallel trajectory, exasperating the cost of living crisis for countless households.
“This Minister has talked the talk on this, now he must walk the walk – expecting insurance premiums to fall is not the same as taking action to ensure that they do.
“Central to the concept of insurance is that premiums are dictated by associated risks – this is no longer the case.
“It is clear this process is broken, with insurance companies taking on fewer risks and costs while their policy holders are hit with record premiums.
“This is exemplified by Chill Insurance reporting that its pre-tax profits jumped by 538% in just one year.
“This is not a new problem, and we have been waiting long enough for the government to address it.
“Real action must be taken to ensure the insurance market is balanced and aids in the development of Irish businesses.”
April 2nd, 2025