TD calls for insurance reform, saying 'public have been ripped off for too long'
Laois-Offaly TD Brian Stanley has called for insurance reform to be introduced without delay, saying companies in the sector have "ripped off the public for too long".
Speaking in the Dáil this week in relation to a Sinn Féin Bill on insurance, he said premiums had continued to increase despite the insurance sector making €142 million in profits last year.
He said the Sinn Féin legislation would force insurance companies to pass on savings to their customers and reduce premium prices as a result of new personal injury guidelines.
"A recent survey by Sinn Féin found that 58% of respondents had seen their premiums increase. This is despite the new guidelines.
"Our legislation forces the industry to outline to the Central Bank how it has passed on the savings to the public. Similar legislation has been enacted in Britain and governs the practices of all relevant companies there such AIG, AXA, Aviva, Alliance and RSA, all of which operate in this country," said Deputy Stanley.
"Dual pricing was banned by the Financial Conduct Authority (in the UK) last Friday, yet continues here in Ireland. The British ruling affects both home and motor insurance.
"Dual pricing involves the overcharging of loyal customers on renewal premiums and can drive up prices by in the region of 35%. The Central Bank has recently investigated this practice in Ireland, thanks to complaints submitted by Deputy Pearse Doherty and Sinn Féin, and it found that the practice was widespread. It meant that those customers with the longest tenure were paying the most.
"We need to see action on both these fronts. We need action now to outlaw these practices. The ball is firmly in the Government's court, and any thoughts of delaying this are outrageous. There has been too much delay and there should be no more delays. It is time to act," he said.
After the Government moved to amend the Sinn Féin legislation, Deputy Stanley accused them of "kicking the can down the road" and "letting the insurance companies off the hook again".