A leading insurer said today that insurance costs are likely to fall as the reforms introduced to combat "compo culture" are beginning to take effect, according to insurer FBD.
FBD today announced premium reductions of up to 10 per cent across its product range reflecting an improved claims environment, particularly for motor and property.
FBD said base car insurance premiums for all policyholders will be reduced by 5 per cent, in addition to the 5 per cent introduced earlier this year.
Home insurance and farm property rates are being reduced by 10 per cent. Shops, pubs and other retail outlets will see their property rates fall by an average of 7.5 per cent.
Speaking at the announcement, Mr Martin Moran, said the combined focus on bogus insurance claims and the awards system has already made an impact on claim frequency and claim settlement levels which are resulting in better underwriting trends.
"Liability insurance is still a problem but is showing some signs of improvement. If these improvements come through to the bottom line, we will ensure our customers see the benefits in reduced premium," Mr Moran said.
He added that customers have good grounds to be confident of further reductions in insurance premiums in the months and years ahead provided the Government remained focused on insurance reform.
FBD complimented the work of the Oireachtas Joint Committee on Enterprise and Small Business and their recent Interim Report. Mr Moran said he hoped that the momentum to ensure delivery of necessary reforms, which the Committee had clearly identified, will be maintained.