Fianna Fáil proposes measures to combat ‘soaring’ motor premiums

Fianna Fáil has called for a revamp of the Motor Insurance Advisory Board (MIAB) to deal with “soaring” motor insurance premiums.

According to CSO data, motor premiums have risen by approximately 24 per cent over the past year with insurers warning of further increases of up to 20 per cent in 2016.

Party finance spokesman Michael McGrath said the benefits in terms of reduced motor premiums which were achieved in the period from when it was set up to 2013 “are now evaporating”.

“This is putting a squeeze on family finances and putting businesses under increased cost pressure,” he said. “Unfortunately, the situation has been met with indifference from the Government with the Minister for Finance seemingly only concerned with solvency issues relating to insurance firms.

“It appears no one in Government is concerned with the interests of consumers and businesses when it comes to insurance premiums.”

Mr McGrath proposed a number of measures alongside a revamp of the MIAB including “full transparency” on the profitability of the industry, an improved regulation model, action on exaggerated claims, consistency in court awards, and clear distinction to be made between the Motor Insurance Bureau of Ireland and the Insurance Compensation Fund.