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PRESS
RELEASE: Blue Book 2003
"Price Controls should be introduced to bring Motor Insurance premium
down to half what they are now"
Premium
income in 2003 was more than double the claims paid. The 2003 Blue Book
has just been published and the table below compiled by Mick Murphy the
National Organiser of MIJAG (Motor Insurance Justice Action Group, mijag.com)
shows that during the years 2001, 2002 & 2003 the reserves of the
motor insurance companies also doubled. They now have four years reserves
instead of the normal two. On top of that they took €580 million
in profit during those three years, which is way more than the total for
the previous 30 years and are now over 100 times more profitable than
their UK counterparts.
All
figures taken from Table 15 of the various Blue Books
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(all figures are € million)
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1997
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2000
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2001
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2002
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2003
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Premium Income
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764
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951
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1,471
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1,452
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1,678
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Claims Paid
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659
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717
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971
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966
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815
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Profit including Investment Income
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34
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-108
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5
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201
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374
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Provision made for future claims (Reported + Not Reported)
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1,579
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1,799
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2,611
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2,870
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3,239
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Claims Provision as a multiple of claims paid
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2.4
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2.5
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2.7
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3.0
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4.0
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Mick
Murphy the National Organiser of MIJAG said "During 2001 and 2002
there were massive premium hikes for everyone. It is clear from the 2001/2002/2003
figures published in the Blue Books that these hikes were not justified.
They went to boost insurance company profits and reserves. These reserves
can be written down as profits over years to come".
"It
was clear from 2002 onwards that the rate of claims were likely to drop
due to the penalty points system and the setting up of the Personal Injury
Assessment Board (which is only just starting its work). The increases
we had to pay in those years were never justified". "The MIAB
Report published just before the 2002 General Election commenting on 1990s
figures (P5, E7) concluded that insurance companies here made a sufficient
return on investment of 4.2% and they were ten times more profitable than
UK companies. Since then their profits have gone up more than ten fold"
Mr. Murphy said.
"If
the Government were serious about this issue they would intervene and
introduce price controls bringing the average premium down to €400
from the current €785. All beginners drivers should be charged the
average premium and assumed to be safe drivers until they prove otherwise".
Mr Murphy said.
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