Why are we paying more for insurance?

 

Tuesday, Mar 31,2009, 11:06:02 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 revealed that customers are paying an average of 300 pounds per year on the cover more than the rest of the UK Uni.

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 Council 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.

"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," said Eleanor Gill , Executive Director of the Consumer Council.

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. "Our research confirms that we have less choice of insurance providers - the maximum number for Tender offer car insurance here was 15 compared to 51 insurers in Britain, "said Gill.

"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 have no insurance and 36% have no building insurance.

Ms. Gill said there are opposing views on why insurance costs, so much more.

"The problem lies with the practices of insurance companies, the legal system, the consumer or any combination thereof. Further investigation is urgently needed," said Gill.

"Consumers need insurance that is fair, affordable and appropriate. To this end, the Consumer Council focuses on promoting more switching and greater penetration of insurance protection for consumers."

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