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Beleaguered motorists could see another double digit rise in insurance premiums as the Central Bank tells insurers to raise premiums to shore up gaping holes in their balance books. As previously reported by Completecar.ie the insurance industry has taken a beating in recent years with a return to prosperity said to be leading to an increase in claims and massive payouts from storms like last year's Storm Darwin. It is believed that Irish insurers lost €234 million on motor insurance in 2013 alone with a higher figure expected for 2014.
According to a report in the Irish Mail on Sunday, the Central Bank has told insurers they must "give greater consideration to pricing strategies" and they "need to ensure that the core underlying business is sufficiently profitable."
Industry figures expect premiums to rise by between 10- and 15 per cent this year, which comes on top of the average 16 per cent increase already experienced by motorists.