RGDATA expresses concern over insurance costs guidelines

RGDATA director general Tara Buckley

RGDATA has said that it is "seriously concerned" for insurance costs as the new recommendation of non-binding guidelines will not be a sufficient check on legal costs.

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RGDATA has said that it is “seriously concerned” for insurance costs as the new recommendation of non-binding guidelines will not be a sufficient check on legal costs.

Following the publication of the Indecon Report on Legal Fees by the Department of Justice, Tara Buckley, director general, RGDATA wrote to Minister Jennifer Carroll MacNeill on behalf of the retailers’ association’s members.

In the letter Buckley, noted: “The feedback from RGDATA members, including the members that you met last month [January] in Twomeys SuperValu Deansgrange, suggests that despite the programme of reforms introduced by the Government over the last few years, the level of premiums remain excessive and there is still an absence of competitive choice in the market.

“We understand your commitment to reduce insurance costs, which are a significant outlay for SMEs including the retailers that RGDATA represents and would welcome an opportunity to meet with you to explore additional measures that can be taken to drive down insurance costs and enhance competition.”

‘Enhanced Margins’ Concerns

Buckley highlighted that the group’s concern is that the insurance industry will retain enhanced margins rather than passing them onto policy holders, while the legal profession simultaneously will do little off its own bat to reduce legal costs.

“There is no incentive or compulsion on the legal profession or the insurance industry to do otherwise,” she added.

“I hope you will agree to meet with us in the coming weeks, so that our shared objective to reduce insurance costs and business overheads can be achieved.”

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