Cookies on The Southern Star website
We use cookies to ensure that we give you the best experience on our website. We also use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the The Southern Star website. However, if you would like to, you can change your cookie settings at any time by amending your browser settings.
How does The Southern Star use cookies?
Cookies enable us to identify your device, or you when you have logged in. We use cookies that are strictly necessary to enable you to move around the site or to provide certain basic features. We use cookies to enhance the functionality of the website by storing your preferences, for example. We also use cookies to help us to improve the performance of our website to provide you with a better user experience.
We don’t sell the information collected by cookies, nor do we disclose the information to third parties, except where required by law (for example to government bodies and law enforcement agencies).
Hide Message
  • Business

Call to review soaring costs in agricultural insurance

Saturday, 12th August, 2017 3:02pm
Call to review soaring costs in agricultural insurance

The senator has now called on the Minister for Finance and Public Expenditure Paschal Donohoe, above, to initiate a review of insurance costs within the business and agriculture sectors.

A WEST Cork business owner has seen an insurance increase of more than 100% in the two years between 2014 and 2016. 

That’s according to Fine Gael Senator, Tim Lombard,  who described it as a ‘worrying trend; where the increase in cost is higher than the total insurance cost of two years prior.’

The senator has now called on the Minister for Finance and Public Expenditure Paschal Donohoe to initiate a review of insurance costs within the business and agriculture sectors.

 ‘Recent years have seen successive increases in the price of insurance premiums across the board. Many in the business and agriculture sectors are paying increasingly exorbitant premiums which are becoming completely unaffordable.’

And the soaring prices are not a one-off, he added.

‘The Minister of State, Michael D’Arcy TD, said a Cost of Insurance Working Group has been established to review the extent of the issues within the sector, the first phase of which focused on motor insurance,’ he said. 

‘Throughout this process the Working Group decided to initiate a second phase to examine the cost of public and employer liability insurance as these are the second and third largest areas where personal injury claims arise.

‘As public and employer liability insurance are the two core insurance types necessary for the agriculture and business sectors it is important to review and try to reduce these costs to minimise insurance premiums for these sectors,’ added Sen Lombard. ‘While the Government cannot directly interfere and enforce pricing thresholds on insurance providers, it is possible to influence factors that contribute to market stability as well as the availability and cost of insurance.

‘One of the biggest factors currently affecting insurance costs to the consumer is the competition, or lack thereof, within the insurance market. There are only two major insurance providers for Ireland’s agriculture and business sectors, effectively reducing the need for competitive, or, in the eyes of the consumer, affordable, premium rates.

‘In order for insurance premiums to be sustainably reduced there needs to be more competition within Ireland’s insurance sector. To address this issue the Government must make the market more attractive to potential insurance competitors.

Stay up-to-date with the latest West Cork news with a Southern Star digital subscription on your phone, tablet or computer. Click here for more.