Sharp increases this year in the cost of general insurance for businesses have been blamed on consolidation in the Irish market as well as the rising cost of settling claims.
Insurance brokers who contacted The Irish Times maintained that only four insurers were now quoting for medium-to-large business risks compared with up to 10 companies before.
One industry source said that 17 of the companies operating in the Irish market in 1993 were now part of five major groups while three of the five Lloyd's syndicates who underwrote Irish risks merged into one a year ago.
Brokers said the companies now quoting were Hibernian (GGNU), Eagle Star, Allianz and the Royal & Sun Alliance.
A number of brokers reported premium renewal quotes for their clients of up to 100 per cent on employer and public liability and up to 50 per cent on motor liabilty - even where clients had no or very low claims over the past year. Brokers said the insurers quoting for business were "extremely selective" in the risks they were prepared to accept. They have been unable to get any alternative quotations for a number of clients, they said.
Commenting on advice from the Department of Enterprise, Trade and Employment that brokers should shop around outside the Irish market for their Irish clients, one broker maintained: "The only realistically available market outside Ireland is Lloyd's London. Lloyd's will only quote very selectively for Irish risks." He called on the Department spokeswoman to "identify these other markets".
Some brokers claimed insurers are starting to introduce measures which would add further costs.
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