Oireachtas Joint and Select Committees

Thursday, 3 October 2019

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Insurance Sector: Discussion (Resumed)

Photo of Kieran O'DonnellKieran O'Donnell (Fine Gael) | Oireachtas source

I welcome all of the witnesses to this committee hearing, which follows on from our previous one with AXA, FBD and Allianz. Today, I would like to follow up with a few quick questions. All three insurers present share a common theme. Mr. O'Rourke from AIG stated: "Claims awards and legal costs make up the majority of insurance premiums and this is a key factor in the cost of insurance in Ireland." Mr. Quinlan from Aviva Ireland stated: "The cost of claims remains the largest influencing factor on the cost of insurance in Ireland." Mr. Brennan, representing Zurich, stated: "We cannot get away from the fact that the single biggest input into our calculation of insurance premiums is the cost of claims." I ask the witnesses to break down the premia into the cost of claims, awards, legal fees, administration and the profit margin that they seek to cover. My request is simply to elicit the information and I ask Mr. Quinlan to respond first.

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