Louth's Ó Murchú says time to ‘end the insurance rip-off’
95% of respondents to a survey on motor insurance stated that their premium had increased in the past 12 months
Sinn Féin TD, Ruairí Ó Murchú, has said that the insurance industry is continuing to rip off consumers and pocket savings brought about by recent reforms.
The Louth TD was commenting as 95% of the 1,390 respondents to a survey on motor insurance, conducted by Sinn Féin Finance spokesperson Pearse Doherty, stated that their premium had increased in the past 12 months, while 98% of respondents said they had made no claim against their policy in the same period.
Deputy Ó Murchú said it was time to “end the insurance rip-off”, and that his party’s legislation, the Judicial Council (Amendment) Bill, would hold the industry to account and apply downward pressure on insurance premiums. He said: “For years, the industry made bogus assertions that fraudulent claims were driving up insurance costs. Information received by Pearse Doherty was that the number of fraudulent claims that insurance companies were reporting to the Gardaí was a small fraction of the 20 percent of all claims that they had previously claimed to be fraudulent.
“Sinn Féin’s legislation to strengthen consumer protections in their insurance contracts became law in 2019 and tipped the balance in favour of policyholders. We then led a campaign to ban the unfair and discriminatory practice where insurance companies were artificially hiking the premiums of renewing customers.
“But it is clear from the responses to the survey that despite these reforms, the insurance industry is continuing to fail consumers. Prices are too high for workers and families while profits soar. Respondents speak of being ‘fleeced’ and having to make increasingly tough choices.
“This is unacceptable, particularly at a time when motor insurance profits reached their highest level in more than a decade – reaching €159 million in 2022 alone.”
Deputy Ó Murchú continued: “This industry continues to record bonanza profits, but it is clear that instead of passing on the substantial savings made from reduced claim costs to customers in full, insurance companies are pocketing the savings to bolster their profits. The purpose of reforms such as the Personal Injuries Guidelines was to deliver reduced prices for customers and small businesses, not increase industry profitability.
“Sinn Féin’s legislation, the Judicial Council (Amendment) Bill in 2021, would require the insurance industry to report to the Central Bank detailing how it has or hasn’t passed on these savings to customers – euro for euro.” He added, “It is time to progress this bill, protect consumers, and pressure the insurance industry to do the right thing and cut prices”.