Insurance premiums rising for businesses
The results of a poll of hundreds of small and medium businesses about their liability insurance were described as ‘striking’.
Print1 July 2025
Insurance premiums have risen for almost three-quarters of businesses over the past two years – yet the same number have not made a claim in that time, a survey has found.
The results of a poll of hundreds of small and medium businesses as well as sports, community and voluntary groups about their liability insurance were described as ‘striking’.
Contact with An Taoiseach and the Tánaiste
The Alliance for Insurance Reform survey also found one in five organisations have only one underwriter willing to provide insurance cover, a situation it described as ‘a perilous state’.
Of the 775 businesses surveyed, nine out of ten said they had not benefited from the Government’s action plan on insurance reform.
It found that two thirds have seen added exclusions, increased excesses or both, which means people are now paying more and getting less.
Three quarters – 76% – said they have not had a claim in the past two years while four out of five people believed claims were unnecessarily extended by the legal profession to increase their fees.
Some 95% of respondents did not believe insurers when they said they were passing on savings to customers and 93% of respondents said they did not believe it was appropriate or necessary for personal injury awards to be increased at this time.
Alliance board member and grocery store owner Flora Crowe said: “The Government risks being seen as completely out of touch if it approves an increase in awards that will see insurance premiums skyrocket – do they not know people just can’t afford it?
“It is only a few years ago that the Personal Injuries Commission found that awards here were 440% higher here than in England.
“The Personal Injury Guidelines brought them down a bit, but premiums have continued to go up.
“If they increase awards now, the Minister for Justice is guaranteeing that my premium goes up considerably,” she said.
“Motor insurance costs are certain to keep going up as well. I just don’t see how ministers and TDs can support it.
“I run a small business like many other people, and the cost of business is already the biggest concern facing us and now the Government looks set to make it worse.
“Where is the SME test in all of this? The increase will undo so much of the good work done on insurance reform by the last government,” said Ms Crowe.
“The findings in this survey couldn’t be clearer – I hope common sense will prevail, but I am very worried.”
Premium prices are rising as the volume of claims is falling, awards are down, and insurance companies are making record profits, the Alliance claimed.
Its report said industry needs “to see rapid delivery of the Government’s commitments to increase competition in the liability insurance market”.
It added: “The last Government undertook an extensive programme of reform, and it must be galling for them to see the benefits of these reforms not being shared with policyholders.”
The Alliance was also critical of the so-called “legal stretching” of cases and described the number of cases – 70% – that go to litigation as “astonishing”.
An Alliance for Insurance Reform spokesman said: “We know from a recent Central Bank report that liability awards are the same on average whether a claimant settles at the Injuries Resolution Board or via litigation.
“It is therefore astonishing that almost 70% of claims – equating to almost 90% of the overall value of liability claims – continue to be settled in litigation.”
Insurance premiums
Premium prices are rising as the volume of claims is falling, awards are down, and insurance companies are making record profits, the Alliance claimed.
The Minister for Justice is currently poised to recommend a 17% increase in awards to Cabinet in the coming weeks, it reported.
But the spokesman added: “Awards in Ireland are higher than virtually anywhere else…. It is obvious to everyone what will happen to premiums if this increase goes ahead.”
© 2025, ShelfLife by Laura Kelly
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