Oireachtas Joint and Select Committees

Wednesday, 18 December 2019

Joint Oireachtas Committee on Justice, Defence and Equality

Access to Justice and Legal Costs: Discussion (Resumed)

Mr. Gerry Hassett:

I can explain. The loss ratio is one dimension of the profitability of the motor market and it does not take into account any commissions paid or the management expenses of any of the insurance companies. Typically, those expenses are of the order of 20%. If we take a long-term average of a 75% loss ratio and 20% commission and expenses, that leaves room for a 5% margin.