Sir, – I have every sympathy with your recent correspondents and their experience with motor insurance costs (September 8th, 9th).
I have been hit with a 35 per cent premium increase, and my son with a 70 per cent increase.
The extraordinary thing about these increases is the fact they are consistent across all insurance companies. This would suggest that all have similar customer profiles, the same claims history, and the same overheads.
I find this quite extraordinary and know of no other industry that performs in a similar fashion.
Equally puzzling is that there is little evidence to suggest a basis for a large increase in claims, and the companies concerned have been less forthcoming in presenting any real data to support their position.
The very fact that the industry as a whole can suggest that further large increases are in the offing is equally bizarre, and I am not aware of any announcement by any provider of a cost-containment programme that is usual when companies experience a downturn.
The insurance industry is supposed to be open and competitive, and it quite clearly is not any more.
I think we all deserve a real explanation as to why these increases are happening, and we should look to Government to insist it be provided, given the reluctance of the industry to do so. – Yours, etc,
DEREK MacHUGH,
Bray,
Co Wicklow.