Thursday, June 13, 2019

Profits at insurance companies have increased by more than 1000%, despite rising premiums for customers.

According to the Irish Independent, the 17 domestic non-life insurers made combined profits of €227m in 2017, up from €16m in 2016.

This is an increase of 1,318%, according to Insurance Ireland.

Motor cover for private and commercial motorists gave the insurers combined profits of €125m, while average motor insurance premiums increased by 70% between 2013 and 2016.

Household and commercial property insurance provided combined profits of €84.3m to the 17 firms.

There are calls on the Government to do more to bring down insurance costs.

However, business journalist Gavin McLoughlin said there are two sides to the argument.

He said: “It’s legitimate to say ‘well why shouldn’t these profits be given back a bit? Insurance companies should cut premiums and help customers out’.

“The other side of the coin is maybe we actually want insurers to be making good profits, to be financially robust companies because as we have seen here when insurers go bust, we don’t want something like that to happen again. “

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