Independent TDs pitch insurance tax to fight fraud and soaring premiums
The pressure on government to take steps against soaring insurance premiums is heating up ahead of Budget 2020, with the Independent Alliance TDs planning on a tax on insurance companies as one prong of the attack.
Print27 August 2019
Transport Minister Shane Ross is set to insist on the introduction of a tax on insurance companies during the Budget 2020 negotiations. According to a Sunday Independent report, the levy will target insurance companies making significant profits despite these same profits having a crippling effect on thousands of SMEs and homeowners.
The soaring cost of insurance premiums is of major concern to retailers in every corner of Ireland, as fraudulent personal injury claims drive up premiums to unsustainable levels. The Independent Alliance will propose on a levy of between 2% and 5%, according to the report.
“We are looking at the possibility of an insurance levy and papers are being prepared on ways to bring down premiums,” an Alliance source told the newspaper. “They have gone from tiny profits into very big profits and they are set to rocket further on the back of heavy premiums.”
According to recent figures, insurance company profits have increased by 1,300%, while the country finds itself gripped in an “insurance crisis”. The 17 main insurance companies made a combined operating profit of €227m in 2017.
Recently published figures show that insurance company profits have increased by 1,300%, despite the country being gripped by an insurance crisis. The figures from the industry show the 17 main insurance companies operating in Ireland made a combined operating profit of €227m in 2017, up €16m from 2016.
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