Insurance industry taking government for a ride with record €176 million profits while consumer prices barely budge - Pearse Doherty TD
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has said that the publication of the Central Bank's 2021 Motor Insurance Report shows clearly that the insurance industry has continued to grow its profit margins, at the expense of consumers, as they rose to a record €176 million.
Teachta Doherty said:
“Today’s Central Bank Report shows once again that the insurance industry is protecting its own profit margins at the expense of consumers.
“Year after year, the industry has called for reforms while waging an aggressive PR campaign over claims and fraud with no evidence to back it up.
“Over the past number of years, reforms have been introduced while the number and cost of claims has fallen.
“Last year, the industry’s profits reached a record €176 million while insurance prices barely budged.
“Their profits have increased every year.
“Motorists continue to be fleeced while small businesses and voluntary groups struggle to survive as their insurance costs continue to rise.
“It is clear that the insurance industry is taking this government for a ride – when they are given an inch they take a mile.
“They have chosen to pocket the vast savings it made during the pandemic and now expect to pocket further savings from reforms that have been made to the sector.
“For too long, the government has regurgitated the lines of the industry and bought their spin rather than holding them to account.
“Sinn Féin has held the industry to account on its price gouging of consumers, leading to a ban on the discriminatory practice of price walking.
“My legislation, which is before the Finance Committee, would further hold the industry to account to ensure that reduced personal injury awards are passed onto consumers, euro for euro.
“It is now time that this government supports it.
“In the teeth of the cost of living crisis, it is galling for struggling consumers to see the industry prioritise profits over fair value and prices.”