NCPC- Key Actions Needed to Reduce Insurance Costs
Thu Feb 25 2021
The National Competitiveness and Productivity Council (NCPC) has published its bulletin on Insurance Costs. Its conclusions are not surprising. This report affirms the widely held view that bringing personal injury award levels consistently in line with international norms are key to ensuring new capacity in the market and should lead to lower insurance costs, which would assist businesses and consumers that need insurance.
The NCPC has concluded that key actions in the Government’s Action Plan for Insurance Reform, including the personal Injuries guidelines, should achieve this; if not, further actions, including Oireachtas guidelines on award levels, need to be considered as the competitiveness of Irish business, particularly SMEs, is impacted by the cost of insurance. This is particularly the case in the area of liability insurance, where the recent CCPC study, to which Brokers Ireland contributed, suggested that there was a slow, but steady, rate of increase in public liability premiums over recent years. Measures in three key areas need to be taken, to facilitate the swift adoption of new Personal Injuries Guidelines that will replace the Book of Quantum, to enhance and reform the role of the Personal Injuries Assessment Board and to promote competition in the insurance market.
Ultimately, without greater consistency in award levels, and lower settlement costs, the cost of insurance will continue to weigh on the competitiveness of enterprises operating in Ireland and especially SMEs.
Director of General Insurance