10 March 2019
By Mary Bermingham
Small and medium-sized companies squeezed by rising insurance premia
Fianna Fáil Spokesperson on Spokesperson on Jobs, Enterprise & Innovation Billy Kelleher (Cork North Central) is warning that businesses are facing closure because they can no longer afford significantly increased insurance premiums.
“Small businesses, farmers, marts and community organisations are being hammered by rising insurance costs and some smaller family run companies say they may be forced to close if premiums continue to increase. I’ve been talking to some business owners who have seen their insurance costs double over the past five years. This level of increase is simply not sustainable”, said Deputy Kelleher.
“We had an issue with motor insurance over the past number of years but this is now spreading out to public liability costs. It doesn’t matter where you are in the country, prices are rising across the board.
“The Cost of Insurance Working Group was set up specifically to examine high premiums and to bring them under control. However, the government has failed to act on its recommendations.
“There is still no national claims database. The government promised that this would be up and running by the middle of last year. As it stands, it is unclear whether it will even be established by the end of this year.
“The establishment of a dedicated Garda insurance fraud unit is another measure which needs to be brought in as a matter of urgency. Businesses have been active in voicing their support of this essential proposal.
“This government has taken its eye off the ball on the issue of insurance and businesses up and down the country are paying the price. The Minister needs to wake up to the seriousness of the issue and step up to the mark in tackling insurance costs”, concluded Deputy Kelleher.