Over the years, in the insurance industry, we have seen claims costs rise constantly. Insurers here and overseas have come and gone because they could not make money from the Irish Insurance market. This is the simple truth.
Politicians love to posture about Insurance Companies being gougers. As an example of how untrue this is even at this moment, look at the London market. This is no reflection of Brexit, but of the attitude to Irish business. At the 31st December 2018, there were 11 insurers Underwriting Irish business. On the 1st January 2019, this reduced to 6 and their risk appetite was severely cut back. The reason; claims their size and the fickleness of the Irish judiciary.
Do it’s great to see that at last however slowly there is talk that some manners will be put on the court system. Minister of State at the Department of Finance and the Department of Public Expenditure and Reform, Michael D’Arcy has been very critical and you can read details in this article.
As he states, significant changes will need to be made to the book of quantum. I would also suggest that changes need to be made to the way the Personal Injuries Board operates. It has become too easy for the system to be circumvented. This adds substantial costs to claims by way of legal fees.