Insurance Companies profits soar thanks to the setting up of the PIAB while the motoring public get the crumbs.
Insurance company profits for the past few years are over thirty times higher than the average for the late 90s, yet premiums have only dipped slightly. “From a situation where profit was around 3% of claims paid towards the end of the 90s the average for the 00s is ten times that at 30% and it was a whopping 62% for 2005 with the indications for 2006 that it will go even higher” Cllr Murphy said and continued. “Relative to the numbers of cars on the road total claims paid have dropped due mainly to the Personal Injuries Assessment Board (PIAB) being set up, yet the Insurance Companies continue to just rake it in”.
The Deloitte & Touche report commissioned by the Government and published in October 1996 said “We found that the profitability of Insurance Companies appears to be comparable to companies of similar stature and market share in the financial services sector”.(last paragraph in the report). “I wonder what they would say if a similar report was published now” said Cllr Mick Murphy the National Organiser of MIJAG the Motor Insurance Justice Action Group who have been campaigning on the issue since 1999.
The PIAB have come out publicly and said we should all be paying half what we are paying now for Motor Insurance and MIJAG fully agrees. What is more MIJAG believes that the Insurance companies reserves are inflated by over €900m. “That money should be used to pay for a major national road safety initiative”. Cllr Murphy said.