The cost of insurance premiums should not be so high that you are overpaying because of an increase in liability premiums. It was found that there was an increase in liability premiums of up to 10%. There is a silver lining to the increased premiums, it can be reduced if the stamp duties are cut. The question is, will this be a once-off thing or a recurrence?
During a survey with the help of 74 members of the community, voluntary, and charity sector – we found nearly half of the members saw their liability premiums increased by more than 10%. This is high insurance for businesses, regardless of the reductions in the value of particular personal injury awards.
According to The Insurance Ireland, the market for Employers Liability (EL) and Public Liability (PL) has been unlucrative for several years and remains very challenging. The number of insurers providing EL and PL cover in the Irish market has been reducing because of this.
Where do we begin?
We should start with the strengthening of the powers of the Personal Injury Assessment Board, the rebalancing of the duty of care between business and the citizen, and increasing competition in the market.
“We must see a strengthening of PIAB’s ability to settle cases so that fewer claims go to the Courts, where the legal costs add so much to the overall cost of settling claims,” Ms. Murdock added.
“The reductions in claims payouts announced by PIAB following the introduction of the new Judicial Guidelines on Personal Injuries are welcoming, but they are relevant only to the PIAB cases and we are yet to know the impact on claims that are being litigated through the courts,” said Moyagh Murdock, CEO of Insurance Ireland.
Is Covid-19 a blessing or a curse
Due to the pandemic, a proposal to reduce the levy is being established, because of fewer claims. This has led to the emergence of a surplus in the Risk Equalisation Fund. The Health Insurance Authority recommends a one-off cut to the health insurance levy paid by insurers.
Lauren Brien, HIA chief executive, mentioned that the once-off reduction to the levy has been done with the expectation that insurers will pass the saving onto their customers when they renew so that consumers gain the surplus benefit in the fund.
It would be reasonable to say that health insurance premiums are set to decrease. It is estimated that it will lead to a 6% cut in the average non-advanced policy premium and a reduction of 3% on the average cost of an advanced policy.
The Government is looking to implement a reduction in stamp duty of €35 to €43, which will reduce policy costs. This will be effective from 1 April 2022. Should policies be renewed before then – members will not receive the benefit of the reduction until 2023. To talk to your insurer at the renewal stage to avoid overpaying on insurance. Stay updated and informed with Mark Kennedy for the health of your business.