Pearse Doherty (Donegal, Sinn Fein)

I move:

That Dáil Éireann: notes that:

— the Government have failed to end the rip-off when it comes to insurance costs;

— the increasing cost of motor insurance is putting many people under severe pressure in a cost-of-living crisis;

— the cost of motor insurance has increased at more than four times the general rate of inflation;

— people are now facing health insurance costs of roughly €2,000 every year, affecting almost 2.5 million people in this State, many of whom were already struggling to afford to keep their coverage;

— there has been a substantial decrease in median award value among motor, employer and public liability claims; and

— despite a drop in claim related costs, a survey of businesses and civil society organisations, conducted by the Alliance for Insurance Reform, found that the vast majority reported premium increases in the past two years and faced higher excesses, new exclusions, or both, meaning they are paying more for less cover;

regrets that:

— the Government have failed to get insurance costs under control;

— customers have not benefited in the form of reduced premiums as a result of reduced claims-related costs for insurance companies in the way they should;

— the Government has taken no meaningful action, despite extensive evidence that previous reforms have not been passed on; and

— insurance companies in this State are making profits far in excess of industry norms, at the expense of workers, families, businesses and community groups; and

calls on the Government to:

— address the disproportionate profits being made in the insurance sector;

— stand up to insurance companies to ensure fair and stable insurance prices;

— recognise the role that high insurance costs play in driving the cost-of-living crisis, both directly through higher premiums and indirectly by driving up the costs of businesses, public bodies, and civil society organisations;

— progress and enact the Judicial Council (Amendment) Bill 2021, to ensure the benefits of reforms are passed onto customers in the form of lower premiums, rather than captured as higher profits for insurance companies;

— ensure meaningful Oireachtas oversight in relation to Personal Injury Guidelines, to ensure adequate scrutiny prior to Government decisions; and

— confirm that any future policy change in relation to insurance must be conditional on benefits of both new and past reforms being passed on to customers through lower premiums.

Is é sprioc an rúin seo ná iarracht iachall a chur ar an Rialtas chun gníomhú faoi dheireadh agus stop a chur leis an sailleadh árachais. Tá daoine á lomadh agus tá gnólachtaí faoi bhrú bocht. Tá clubanna spóirt, grúpaí pobail – ní ort iad a lua - uilig i gcruachás maidir le hárachas ag dul in airde. Go dtí go bhfuil rialtas againn a dhéanann fá dtaobh de seo, ní thiocfaidh deireadh leis an sailleadh árachais. Ní mór don Rialtas seasamh suas do na comhlachtaí árachais agus iachall a chur orthu an t-airgead atá á shábháil acu a roinnt lena gcustaiméirí.

The purpose of this motion is simple. It is to force the Government to finally act and put an end to the insurance rip-off. Right now, people are being fleeced. Families are under pressure. Businesses are being squeezed. Sports clubs, community clubs, charities, you name it - they are all being hit hard. Until this Government decides to stand up and take action, the rip-off will continue. Insurance companies must be forced to pass on the savings they are making to their customers. Instead, every reform so far has lined their pockets and boosted their profits while ordinary people pay more and more. Car insurance is up. Home insurance is up. Health insurance is up.

On top of all this, we have a cost-of-living crisis. Food prices are soaring. Energy bills and rents are climbing and people face another blow when they renew their insurance. Last year, the cost of car insurance rose at four times the rate of inflation. It is now at its highest level in five years and almost double the European average. Meanwhile, motor insurers are raking in bumper profits made off the backs of ordinary people just trying to get to work or bring their children to school. What has the Government done? Nothing. There has been no pushback, no outrage and no action. Home insurance premiums are getting higher and higher. Pushed by unaffordable house prices, people are paying far more or being left underinsured. One Government failure stacks up on top of another.

Health insurance costs are almost €2,000 now and even higher for people over the age of 65. This affects many people across the State who are already struggling to keep their cover. The cost of public and employer liability insurance is through the roof, as the Minister will be aware, despite the fact that the cost of claims is actually coming down. What does this do? It drives up the cost of doing business or running any type of community organisation or sports group and it feeds through and drives up costs for everyone. The truth is simple. Insurance companies are simply pocketing the benefits from reforms brought in to reduce the cost of insurance. Nowhere near the full benefit or even a fraction of it has been passed on to consumers. Most of the time, premiums have gone up, while the Government seems unfazed or unbothered about it.

We have seen a Government that has sat back and allowed insurance companies to make eye-watering profits that are completely out of step with industry norms. We have seen, in certain sectors of the insurance market, insurance companies making margins of 17%. That is scandalous in anyone's book. Normal profits of the insurance industry are in the low single digits. That is what we see in other countries that have a functioning insurance system - not here; not in this State; not under this Government. Here, there is free rein for insurance companies and they are told to take as large a slice as they want.

I sat on the finance committee as insurance companies came in one after another and said that if they got the reforms they needed, they would target a profit margin of 5%. What do we see today? Five or six years later under Fianna Fáil and Fine Gael, we are seeing insurance companies record double and triple that as they pocket the savings and give the two fingers to the Government and the public. Not only that, but they want more and the truth is there is still scope and we do need some reform.

Our legal system is too slow and too expensive. The Injuries Resolution Board could play a stronger role and these Houses need to have greater oversight of the personal injury guidelines. However, none of this will matter unless profiteering is tackled head-on. All the reforms in the world are pointless if insurers are free to pocket the gains and charge customers more and more. That is why I am calling on the Government to pass my legislation, which it is blocking. It would force insurers to show exactly how they are passing on savings to customers euro for euro. The truth is that the Government has been taken for a ride by the insurance industry and now it is time to stop standing by the sidelines, stand up for people, businesses and communities and end the insurance rip-off once and for all.

See this speech in context