THE Irish Road Haulage Association has demanded urgent government action to tackle spiralling insurance costs, warning that soaring premiums are forcing small businesses across West Cork to shut down.

IRHA President Ger Hyland said hauliers feel ‘helpless’ as motor, employer liability and public liability insurance costs continue to rise.

His comments came as the association submitted proposals to the Department of Finance as part of the new Insurance Action Plan 2025–2029 consultation.

In their submission, hauliers told government that insurance, in particular Employer Liability and Public Liability Insurance, are threatening the viability of small businesses across Ireland.

Hyland criticised the fact that too many cases are still being settled through our court system rather than through the Injuries Resolution board, even though compensation levels reached through the IRB are on par with those reached through the courts.

He said: ‘I listened to a presentation by an insurance broker at our recent conference. That broker told us that awards for psychological damage jumped from one in 20 cases in 2021 to one in four by 2024—prompting concerns that psychological claims are fast becoming the new whiplash.’

The IRHA has also called on government to introduce a robust independent oversight mechanism to monitor the financial performance of insurance companies to ensure that they are passing on savings from reforms to policy holders.

The IRHA have accused the insurance industry of not passing on savings that government reforms of the last number of years are delivering for them.

Hauliers say that insurers are far too willing to go for the easy option and agree a settlement with a claimant at a discount rather than fighting dubious cases in the courts.