Business owners in Ireland are feeling the pinch as insurance premiums continue to climb despite government efforts to implement reforms. According to data released by the Central Bank, liability cover insurance premiums witnessed an 8% increase in 2022, with the average package policy now costing €2,781.
The Central Bank report revealed that while there was a notable 14% reduction in settlement amounts compared to 2019, this did not translate into lower premiums for policyholders. Instead, insurance companies reported substantial profits, with operating profits soaring by 14% in 2022, reaching €176 million.
Despite suffering a 14% loss in 2020 due to various factors including the COVID-19 pandemic, the insurance sector bounced back swiftly, reporting profits in the subsequent years.
The government had introduced a comprehensive insurance reform plan in December 2020, comprising 66 action proposals aimed at reducing premiums and fostering healthy competition in the market. However, business owners lament that these reforms have failed to deliver tangible results.
The dissatisfaction among business owners is palpable, especially considering the significant increases in insurance premiums across various sectors. In food and service industries, premiums surged by 24% from 2020 to 2022, while in administrative and support sectors, the increase was even steeper at 34%.
As businesses grapple with rising costs, the efficacy of the government’s reform measures remains under scrutiny, leaving many to question when relief will be realized in the insurance market.