The industry charging us more for our insurance?

 

Tuesday, Mar 31,2009, 10:54:02 AM   Click:

Belfast Telegraph
Published: Sunday, March 29, 2009
By Symon Ross

The Consumer Council today called for an investigation into the insurance industry, after new research has revealed that Northern Ireland customers pay an average of 300 pounds per year on the cover above the rest the United Kingdom.

And it appeared that the insurance is so expensive that one third of customers in Northern Ireland can not afford to pay for it.

The results, which is part of the new board's report on the cost of coverage in the province, led the body of consumers' rights to request an investigation into why consumers have such a raw deal when it s question of insurance.

Eleanor Gill, Chief Executive of Consumer Council, said: "The car, contents and buildings insurance market is clearly not working for consumers.

"Compared to Britain, households are paying almost 40% more, leaving consumers worse 160m pounds a year. While we are all affected, some households are particularly affected."

She said that research revealed that consumers pay 84%, or 282 pounds, more on average for motor insurance in Northern Ireland.

Households with the car, contents and building insurance in rural areas pay 62%, or 362 pounds, and low-income households pay 48%, or 345 pounds, more than in Britain.

Breaking the results by region, research has shown a low income household in Belfast, led by a person paying 816 pounds for insurance compared to 575 pounds in Glasgow, while a household headed by a young person in a zone of low-income Fermanagh pay £ 1366 pounds compared to 777 in rural East Anglia.

"A recurring frustration for consumers is that many offers of insurance provided with the tag" not available in Northern Ireland, "said Gill.

"Our research confirms that we have less choice of insurance providers - the maximum number of bids to provide automobile insurance here was 15 compared to 51 insurers in Great Britain.

"Another worrying aspect of this research is that one third of consumers have not insured their homes. When asked why, they tell us they can not afford it or have not obtained this round. There is a potential disaster waiting to happen for these households, if something goes wrong, if there must be a desire to increase consumer protection. "

Approximately 30% of consumers here are not contents insurance and 36% have no building insurance.

Seamus McALEAVEY, CEO of the Northern Ireland Council for voluntary action of the study highlighted the economic pressures facing the local population.

"Obviously, there is a serious problem, particularly for low-income families. It is almost as fuel poverty they have to pay a much higher percentage of their income on insurance," the he said.

The Consumer Council has said it will work in partnership with OFMdFM and members of Northern Ireland the financial partnership to develop a coordinated program to increase the absorption of insurance coverage and increase the level of change and make the turn.

Originally published by Symon ROSS sross@belfasttelegraph.co.uk.

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