Employers' body IBEC says that if current difficulties persist, insurance may become unaffordable.
In a statement to be made at a seminar on insurance costs later this morning, IBEC assistant director Tony Briscoe describes the outlook on insurance costs as 'dismal and uncertain'.
He says insurance is a cost that bears no relationship to business performance. He adds that, for many businesses, it cannot be passed on to customers.
IBEC surveys have shown that liability insurance has risen by over 100% in the past two years, while property insurance has gone up by 80%. Commercial motor insurance has increased by 42%. IBEC says only a handful of insurers are now offering cover in certain areas, making it impossible for many firms to find alternative quotes.
Mr Briscoe calls for measures to tackle fraudulent claims, greater competition in the insurance market and the early introduction of the Personal Injuries Assessment Board.
