FBD says high cost of injury awards one of main factors in car insurance
Oireachtas committee to hear from Injuries Board later today
Insurance groupFBD has welcomed the Competition Commission's decision to investigate the high cost of motor insurance, saying high injury awards were one of the main factors behindincreasing premiums.
"We believe there are many factors that influence cost for the Irish consumer. One of the main factors is the relatively high cost of bodily injury awards. These awards and associated legal costs are significantly higher than in other EU jurisdictions," FBD said in a statement.
It wants Irish awards to be benchmarked against other countries and also called for increased powers for the Personal Injuries Assessment Board to create "an efficient and cost effective claims process for injured parties".
Meanwhile, the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach will continue its hearings on the rising cost of motor insurance when it meets with representatives of the Injuries Board and the Society of Actuaries in Ireland today.
“Given that the remit of the Injuries Board is to assess compensation claims for those that have been in an accident and suffered an injury, the Committee very much look forward to this meeting where we can specifically address possible links between compensation payments and rising motor insurance premiums," Committee chairman John McGuinness said.
The Competition Commission launched an investigation into possible breaches of competition law in the motor insurance sector yesterday, issuing witness summonses and information requests to the major motor insurance companies and groups representing insurers and brokers. It is concerned that open signalling of upcoming price increases in motor insurance premiums last year could have amounted to cartel behaviour.
