Home insurance premiums up 25% in Ireland

by David Masters

Story link: Home insurance premiums up 25% in Ireland

Home insurance premiums in Ireland have sky-rocketed this year despite record unemployment and drastic price cuts across other sectors of the Irish economy.

Consumer watchdogs in the country have accused insurers of “crucifying” customers with “totally outrageous” premium rises of 25%.

In the overall economy, prices in Ireland have dropped by nearly 5% in the past year, the largest fall on record since 1933.

During the same period, home insurers have pushed up premiums by 25% despite the cost of rebuilding damaged homes falling by 5%.

James Doorley, chairman of the Consumer Association of Ireland, lambasted the hike in premiums as “outrageous and unjustified”.

The National Consumer Agency (NCA), meanwhile, is in discussions with Ireland’s financial regulator pushing for an investigation into why insurers have pushed up premiums.

Ann Fitzgerald, NCA chief executive, said she is “very concerned” by the premium increases.

The Irish Insurance Federation (IIF) hit back saying the bottom line on home insurance claims increased 56% last year due to widespread flooding in August 2008.

“The main thing is that premiums are dictated by the cost of meeting claims, so if those rise, so do premiums,” said IIF spokesperson Michael Horan.