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Insurers face questions over compensation agreements

Insurers face questions over compensation agreements

Insurers face questions over compensation agreements Insurance companies in Ireland are in the spotlight with accusations raging that secret compensation settlements are being reached which are in turn pushing car insurance premiums in the country to new heights.

Political party Fianna Fail has demanded that a new national claims register be established which would make it obligatory for insurance companies to publish details of all the pay-outs they make, with the Irish Parliament to hold a debate on the issue tonight. However, Insurance Ireland, the country’s representative body for insurers, has responded that it is not holding back information on compensation agreements.

According to a report by The Independent, Insurance Ireland claims it is wrong to suggest there is no data available in regards to claims settled by insurers. Currently, around two in three claims are settled with the body claiming that legal costs and high levels of compensation claims are among the major reasons why car insurance premiums have spiralled by 34 per cent in Ireland during the last year.

Insurance Ireland’s Kevin Thompson suggested to the publication that there is a high standard of data reporting in the industry and that the Central Bank’s annual insurance statistics report clearly outlines what insurers take in and what they pay out. However, he did say that his body is working with the Government to find ways to make the data easier to understand.

In addition, he questions claims that legal fees in the country have dropped from 30-50 per cent saying that the “statistics don’t back it up” and “that the cost of claims, including legal fees, are leading to rising insurance premiums”.

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