[ad_1]
Auto insurance premiums increased by more than a third between 2009 and 2019, even though the cost of claims per policy fell by 9% during the same period.
That’s according to the latest report on the auto insurance industry released by the Central Bank.
This is the second Central Bank report on premiums and cost claims in Ireland from 2009 to last year.
While you find that the frequency of claims decreased by 45% during that period, the cost per claim increased by two-thirds.
Premium costs increased 35%, but prices moderated from 2018 to last year, according to the report.
The industry loss ratio, which is defined as claims as a percentage of premiums, ranged from 92% in 2014 to 57% in 2017.
The representative group of insurers, Insurance Ireland, said this pointed to an industry that was cyclical and prone to volatility.
Chief Executive Moyagh Murdock said reform was needed to reduce the high and inconsistent cost of claims.
A representative group of businesses and civic organizations described the report as bleak reading.
Alliance for Insurance Reform said premiums had not dropped dramatically in the past two years, contrary to claims.
He said that greed amongst insurers, brokers and lawyers had caused a crisis at the expense of Irish motorists.
[ad_2]