Why are insurance premiums rising when claims dropping?

Cavan County Council is set to write to the Minister for Financial Affairs, Jennifer Carroll, to ask why insurance premiums are still increasing despite claims decreasing.

Cllr Brendan Fay (Independent) proposed a motion to that effect at the May monthly meeting of the local authority, which received unanimous support in the council chamber.

The Belturbet man said, according to industry’s annual report 2022, claims are down for a third consecutive year with 18,453 claims to the Personal Injury Assessment Board (PIAB) in 2022 - a 14% decrease on the previous year and a 41% drop when compared to the pre-pandemic year of 2019.

“All of this has resulted in a 16-year low in the value of insurance claims paid off yet the Central Statistics Office (CSO) says the premiums are still rising despite industry claims dropping 35%,” Cllr Fay continued.

“What is going on is bullying and rip-off tactics by the insurance companies in my view and I want the Minister to look seriously at this.”

Cllr John Paul Feeley (FF) meanwhile highlighted how all of this proved that the “ordinary person” is not being given any consideration by insurance companies.

“There should be more focus on the ordinary person paying their insurance every year and not on the insurance company and their shareholders,” he added.

Members agreed to send a letter to the Minister seeking answers.