New figures reveal that profits for motor insurance companies rose by 26% last year to €418m. The Financial Regulator's Insurance Statistical Review for 2005 says that the cost of claims incurred for commercial and private motor insurance fell from €1.1 billion in 2004 to €920m in 2005.
The report also said that overall motor premiums fell from €1.6 billion in 2004 to €1.57 billion last year, a decrease of 1.8%.
As the number of insurance claims has fallen over the past few years, there has also been a drop in the premiums paid by drivers. Today's latest figures show that that trend continued last year.
The cost of claims incurred by insurance companies declined by 16% to €1.1 billion. That drop helped the profits of the insurance companies which rose by 26% last year.
However, today's report shows that the profits of insurance companies rose faster than charges to consumers fell.
The Irish Insurance Federation says costs to consumers have fallen by 45% over the past three years. A recent survey revealed that consumers could save as much as €1,100 if they shopped around.
But there are indications that the trend in falling motor insurance premia may be at an end. The number of motor insurance claims have risen by 10% to 185,000 last year. When the number of claims rise, it usually means the cost of insurance is not far behind.
Today's report from the Regulator shows that gross premium income received by insurance companies amounted to €31.09 billion last year, up 16.5% on the previous year. Of the total, €23.75 billion (76%) was generated by life companies and €7.34 billion (24%) by non-life companies.
Last year life assurance companies wrote a total of €23.75 billion in gross premia, up 22.8% from 2004. Non-life insurance gross premium written last year amounted to €7.34 billion, the report shows.
