Kieran O'Donnell (Fine Gael) | Oireachtas source

There is a perception out there that, up to a couple of years ago, insurance companies were going head to head in a competitive market. Instead, they were underpricing and not making proper provisions. We then got to a point where the wheels came off the industry's wagon and rates increased.

We have been asked to put a direct question to the insurance companies. They are now beginning to show significant profits, yet their rates are not decreasing in any way. Their reserves and profits are increasing, but their premiums are not decreasing accordingly. We are being told anecdotally that they are provisioning to put a reserve bank in place. The insurance companies blame the legal profession and legal costs. Solicitors and barristers blame the insurance companies. The only person who appears to be getting a raw deal is the consumer. We are here as public representatives. When the legal profession and insurers appear before us, it is a case of déjà vuand we never seem to get to what is really happening. If insurers are making such profits, why are the premiums not decreasing accordingly?