Coverinaclick.ie MD Jonathan Hehir predicts which price hikes and cuts could be on the way.
2016 was a controversial year for the sector, with the Joint Committee on Finance, Public Expenditure and Reform, and the Taoiseach, setting out to deliver a more affordable deal for motorists, considering the rising costs of motor insurance.
In that regard, I would say there is a currently a major “blame game” at play within the industry, leaving you, the consumer picking up the tab.
Regulatory change is important as it has a wider impact on premiums, and as a result of the Committee’s recent findings, I do see the establishment of the Motor Insurance Advisory Board coming to fruition in the next 12-18months.
Other changes which could be made in the medium term (2-3 years) are legislation or regulation for greater transparency on the cost of claims, and the establishment of a register of legal fees collected on personal injury cases.
I do believe Irish judges will toughen up after all the criticism this year, and a clampdown on fraudulent claims should impact the cost of cover. In addition, improvements in the overall regulatory environment should attract new insurers to Ireland, which will serve to drive down the cost of policies.
If insurers see regulatory improvements, they will come in and this would be the fastest way to curb the current increases and possibly drive them lower.
So, what can both the motorist and homeowner do to minimise the cost of their policies in 2017?
Well, there’s a significant possibility that motor insurance premiums have largely peaked though younger drivers and those with claims & penalty points are still pretty unpopular with insurers. Others should see their premiums levelling off or possibly coming back a little.
Correspondingly, house insurance premiums are pretty much at an all-time low, so all it would take is a hard winter freeze or a significant storm to spike claims and generate price rises.
Unlike motor insurance, the cost of home insurance is unlikely to go down but could easily go up, so homeowners should consider locking in for a couple of years on a two or three-year policy providing you can get it at a reasonable price. Visit our sister company Insuremyhouse.ie for more information or Get a Quote now.
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