Alliance releases 2025 Insurance Survey findings
Today (25 June), the Alliance for Insurance Reform publishes the findings of a significant survey it undertook with small and medium businesses, sports, community and voluntary groups in respect of their liability insurance cover in recent months.
Flora Crowe, Alliance Board member
It received a very substantial 775 responses, and the findings are striking:
- Almost three-quarters of respondents have seen their premiums rise in the last two years, notwithstanding recent government reforms. It should also be noted that these increases are occurring at a time when the volume of claims is reducing, awards are coming down, and insurance companies are making record profits.
- One in five organisations has only one underwriter willing to provide insurance cover. This is a perilous state for them to be in, and we need to see rapid delivery of the government’s commitments to increase competition in the liability insurance market.
- 90% of respondents said they have not benefited from the government’s action plan on insurance reform. The last government undertook an extensive programme of reform, and it must be galling for them to see the benefits of these reforms not being shared with policyholders.
- 67% of policyholders have seen added exclusions, increased excesses, or both in recent years. This essentially means people are now paying more and getting less.
- 76% of respondents said they have not had a claim in the past 2 years.
- Four out of five people believed claims were unnecessarily extended by the legal profession to increase their fees. We know from a recent Central Bank report[2] that liability awards are the same on average whether a claimant settles at the Injuries Resolution Board or via litigation. It is therefore astonishing that almost 70% of claims (equating to almost 90% of the overall value of liability claims) continue to be settled in litigation. This is an area that requires much greater examination.
- 95% of respondents did not believe insurers when they said they were passing on savings to customers.
- 93% of respondents said they did not believe it was appropriate or necessary for personal injury awards to be increased at this time. The Minister for Justice is currently poised to recommend a 17% increase in awards to Cabinet in the coming weeks, notwithstanding the fact that awards in Ireland are higher than virtually anywhere else, and he is about to do so in the context of ever rising insurance premiums. It is obvious to everyone what will happen to premiums if this increase goes ahead.
Speaking about today’s (25 June) survey results grocery store owner and Alliance board member, Flora Crowe said: ‘the Government risks being seen as ‘completely out of touch’, if it approves an increase in awards that will see insurance premiums skyrocket – do they not know people just can’t afford it’.
‘It is only a few years ago that the Personal Injuries Commission found that awards here were 440% higher here than in England.
‘The Personal Injury Guidelines brought them down a bit, but premiums have continued to go up.
‘If they increase awards now, the Minister for Justice is guaranteeing that my premium goes up considerably.
‘Motor insurance costs are certain to keep going up as well; I just don’t see how Ministers and TDs can support it.’
‘I run a small business like many other people, and the cost of business is already the biggest concern facing us and now the government looks set to make it worse.
‘Where is the SME test in all of this?
‘The increase will undo so much of the good work done on insurance reform by the last government.
‘The findings in this survey couldn’t be clearer – I hope common sense will prevail, but I am very worried.’
