The Central Bank of Ireland has published the first Annual National Claims Information Database (NCID).
The Report highlights the cyclical nature of the Insurance market, in particular the growth in insurance premiums relative to the cost of claims, and the growth in profitability of motor insurance underwriting since 2015.
The Central Bank data "strips away the insurance - industry mast to reveal (that) motor insurance premiums have risen by a massive 42%, even though, in the same period, claims fell by 2.5%. The Central Bank report reveal that the Industry is generating an operating profit of no less than 9%, while the average level of profit in Britain is 5%.
Neither claims costs nor legal fees could possible account for, or justify, the massive increases in the premiums motorists have been compelled to pay by extremely profitable insurance companies.
We reiterate: why should injury victims have their awards reduced , only to further increase the already massive profits of insurers?
"While the Central Bank does not have a mandate to fix prices in the insurance sector, today's report will assist the Cost of Insurance Working Group, Government, Oireachtas and wider stakeholders in their consideration of the relevant issues.
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