7 March 2002 Edition
Insurance rip-off must end
Reacting to Hibernian Insurance Group's results, Sinn Féin Candidate for Galway West, Daniel J Callanan, has called for an independent inquiry into the entire insurance industry.
"Given the fact that 80% of the industry is now controlled by four major players, it is clear that a cartel exists within the insurance industry," he said. "There is no justification whatsoever for the recent exorbitant increases in premiums which are forcing drivers off the road and companies, particularly smaller ones, out of business.
"Hibernian Group operating profits rose by 28% to €156 million. General Insurance premiums which includes, car, house and business insurance rose by over 30% from €643 million to €845 million and operating profits rose by a staggering 250% from €7.2 million to €26.3 million. These figures, taken in conjunction with the recent report confirming exploitation of young drivers, finally nail the black propaganda that the insurance industry in Ireland is not profitable and that the high cost of insurance is solely down to High Court costs and increasing claims inflation. On the contrary, it is now clear from these figures that premiums are being hiked solely to increase profits and to cover the downturn in investment income.
"Sinn Féin is committed to tackling the insurance monopoly, giving increased powers to the Insurance Ombudsman and if necessary to introduce price controls."
"Given the fact that 80% of the industry is now controlled by four major players, it is clear that a cartel exists within the insurance industry," he said. "There is no justification whatsoever for the recent exorbitant increases in premiums which are forcing drivers off the road and companies, particularly smaller ones, out of business.
"Hibernian Group operating profits rose by 28% to €156 million. General Insurance premiums which includes, car, house and business insurance rose by over 30% from €643 million to €845 million and operating profits rose by a staggering 250% from €7.2 million to €26.3 million. These figures, taken in conjunction with the recent report confirming exploitation of young drivers, finally nail the black propaganda that the insurance industry in Ireland is not profitable and that the high cost of insurance is solely down to High Court costs and increasing claims inflation. On the contrary, it is now clear from these figures that premiums are being hiked solely to increase profits and to cover the downturn in investment income.
"Sinn Féin is committed to tackling the insurance monopoly, giving increased powers to the Insurance Ombudsman and if necessary to introduce price controls."