INSURANCE industry figures for 1995 published yesterday showed a sharp rise in claims in both life and non life insurance.
Last year was "not the best year" for the Irish insurance industry, said Mr Michael Kemp, chief executive of the Irish Insurance Federation (IIF), which published the figures.
The IIF figures show that Irish Life remains well ahead of its competitors in the life end of the market, controlling over 30 per cent of the single premiums market and 26 per cent of the annual premiums market. Irish Life's market share of the single premiums market increased by over 10 percentage points, while it dropped around one percentage point in the annual premiums sector.
New Ireland had 15.29 per cent and 7.54 per cent respectively of the single premiums and annual premiums markets. Ark Life had 10.51 per cent of the single premiums market, and Norwich Union 9.28 per cent of the annual premiums market.
There was an overall increase of 4 per cent in premiums for IIF members in 1995, bringing the total to £2.94 billion. However, gross incurred claims increased by 14 per cent to £2.33 billion. Total assets increased by 12 per cent, to an estimated £17.24 billion.
The life insurance sector saw total premiums increase by just under 4 per cent, to £1.66 billion, but claims payments increased by 17.6 per cent, to £1.29 billion. Improved stock market conditions led to a 12 per cent growth in the value of life company assets, to £12.91, billion.
"Life members remained important investors in the Irish economy during 1995," said Mr Sean Hehir, IIF president. "Some 75 per cent of total assets - £9.62 billion - is invested in the Republic of Ireland, with £4.1 billion invested in Irish gilts, and £3.8 billion invested in Irish equities."
He called on the Government to give serious consideration to a pre budget proposal made by the IIF for the development of a new product, similar to the Personal Equity Plans sold in Britain.
Life insurers were key institutional investors in Ireland but were hampered by the bias endemic in the Irish savings market against risk orientated investment, Mr Hehir said.
The overall picture worsened for IIF non life members in 1995. IIF motor insurers made a net loss of £39.2 million, while property insurers, hit by a series of storm damage claims, made a loss of £12.3 million.
The largest underwriting loss was suffered by liability insurers, who lost £47.5 million.
Gross figures for the non life sector showed premiums increase by 5 per cent to £1.28 billion, but incurred claims go up by 10 per cent, to £1.04 billion. The net underwriting result was a loss of £91 million.
"Losses for liability business have now overtaken motor insurance losses, despite the fact that, in premium terms, the motor sector is three times larger," Mr Hehir said.
The IIF is working with state agencies on devising a campaign to tackle the high level of workplace accidents.
Mr Hehir believed the price of motor insurance would rise.
Mr Kemp said that while the image of the insurance industry could be improved, and they did not want people "buying things they don't want or don't under stand", the IFF was opposed to "over regulation".
