Richard Boyd Barrett TD- Government must act against profiteering of insurance companies, following Central Bank Report
People Before Profit TD and Spokesperson on Finance Richard Boyd Barrett TD has called on the government, following the Central Bank Report on Motor Insurance, to “act urgently to stop the profiteering of insurance companies who are ripping off the public.”
The TD for Dún Laoghaire was commenting following the announcement of the Central Banks’ Report announced today.
Richard Boyd Barrett TD said that the establishment a state not-for-profit insurance company was the only way to prevent this profiteering by insurance companies.
He also said that, at a minimum, the government should move to regulate and control the insurance industry properly to prevent unjustified and excessive premium increases.
The TD pointed out that a state insurance company has been set up in Manitoba Provence in Canada to ensure that people could get motor insurance at a fair price.
The TD also questioned if this profiteering practice was more widespread across other sectors such as childcare insurance and sports clubs.
He said: “The Central Bank Report confirms something People Before Profit have been saying for many years- the real reason for high insurance costs in this country is profiteering by the insurance companies rather than fraudulent claims.
“Fraud is problem that needs to be addressed but this report shows that the main issue is the greed of the insurance companies looking to maximise profits. Profiteering is the real problem and needs to be addressed head on by government.
“Young drivers and taxi drivers are being very seriously affected by this profiteering. In many cases for taxi drivers, it threatens their very livelihoods.
“The state should set up, as I have been calling for, a not-for-profit insurance company like in Manitoba Provence in Canada. The government at the very least should be regulating the insurance industry more strictly.
“Considering the very high cost of insurance for childcare services and sports clubs in this country I would ask that the Minister for Finance investigates whether or not these profiteering practices are being conducted by insurance companies in other sectors of the economy.”