Does the Insurance Industry also need to be honest ?

Jun 20, 2016

Insurance companies paid out more money on claims in 2011 and 2012 than they did in 2014, according to new figures released in the Dáil.

This is despite repeated claims from the industry that the increased number and cost of claims are behind massive insurance premium hikes in the last two years, Fianna Fáil Finance spokesman Michael Mc Grath said last week.

Mr. Mc Grath requested information relating to the total amount insurance companies paid out in claims – as reported to the Central Bank – between 2011 and 2015.

In a written response, the Finance Minister Michael Noonan said the figures relating to 2015 are still being compiled. However, the available figures showed insurance companies paid out €1.01 billion in 2014. This is less than the €1.5 billion paid out in 2011 and €1.06 billion paid in 2012. Just over €987 million was paid out in 2013!

Mr. Mc Grath said the figures show the amount paid out in claims in 2014 was 36% less than the amount paid out in 2011.

“While we do not yet have figures for the amount paid out on claims in 2015, the data to the end of 2014 does not substantiate the assertion by the industry that motor insurance claims are the main reason behind rocketing premiums,” he said.

So whose not telling the truth ?

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