Séamus Healy (Tipperary South, Independent)

The Government must stop the insurance rip-off. Insurance companies are still ripping off the public despite the fact that claims and awards are significantly reduced. Claims statistics show a fall of 40% in the claims between 2019 and 2023 and awards are down over a third. The Central Bank has pointed out that premiums increased by 17% between 2020 and 2023. At the same time, insurance companies' profits are at 13%, more than twice the international rate of profitability of these companies. The Alliance for Insurance Reform surveyed 775 organisations and found that 74% had premium increases in the past two years.

Only 14% had reduced premiums. Community organisations, sports clubs, voluntary groups and small businesses are seeing new exclusions and higher premiums. In other words, they are paying more for less cover, despite there being fewer claims and safer practices. There is absolutely no justification for this situation. Premiums must now reflect the reduced number of claims and the reduced awards. The Government must take action to make sure this happens.

The increased cost of motor insurance is putting families and young people under severe pressure. The cost of motor insurance has increased by more than four times the general rate of inflation. This is particularly disadvantageous to people living in rural areas where there is no or very little public transport. People in these areas have no option but to drive to work, school, college and entertainment. For example, people who live in south Tipperary and work in Clonmel, in Tipperary University Hospital, Tipperary County Council or in the medical devices industry in Medite, Showerings or MSD, must drive to work. Students attending the Technological University of the Shannon campus in Clonmel must drive to college. Young people are being especially fleeced. Health insurance is another area putting families under severe pressure. Another raft of health insurance increases was announced recently, and policyholders now face premiums of in or around €2,000 per annum. This is impacting almost 2.5 million people in the country.

Flood insurance is another area that is very difficult. More than ten years after the successful completion of the Clonmel flood relief scheme, householders and businesses are finding it difficult if not impossible to get flood insurance. If they are able to get it, it is with heavily loaded premiums. The Clonmel flood relief scheme was completed in 2013 at a cost of €44.5 million. The scheme was completed to one-in-100-year protection levels. It has been very successful, but despite this and the exceptional level of protection afforded by the scheme, insurance companies are still denying insurance cover or are heavily loading premiums. This applies not only to properties that have a previous history of flooding but to homes and businesses that have never flooded and are far away from previous flood events. If you have an address in Clonmel, the insurance companies are immediately suspicious and refuse to take into account the very positive impact of the flood relief scheme. I know the Office of Public Works has a memorandum of understanding with Insurance Ireland, which represents the insurance industry, and it sets out the principles of how the two organisations work together, or should work together, to facilitate the availability of insurance against the risk of flooding. This memorandum of understanding is, I am afraid, not fit for purpose. I believe it requires urgent review. Currently, one in 20 buildings or properties has difficulties accessing flood insurance according to the Central Bank. Of course, this number will increase in the future as significantly more rainfall comes along due to climate change, which, of course, increases the likelihood of flood events.

I ask the Minister of State to intervene directly with the insurance industry to ensure properties in areas where modern flood defences have been erected have access to flood insurance on the normal basis. Ultimately, the State may have to step in to provide a type of governmental insurance of last resort to cover those who cannot get insurance at all. This problem, of course, is going to get bigger over the coming years. The Programme for Government 2025 - Securing Ireland's Future commits the Government "to further action to drive down insurance costs impacting households, motorists and businesses ...". It sets out ten actions to do this. It is time to deliver those actions.

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