There is now “no excuse” for insurance companies not to reduce their premiums, a leading expert has said.
Yesterday, the Supreme Court dismissed a challenge by a plaintiff who argued the guidelines pertaining to personal injuries introduced in 2021 amounted to an unconstitutional encroachment on judicial independence., Alliance for Insurance Reform CEO Brian Hanley explained why the guidelines are designed to push down the cost of premiums.“The new guidelines that came in provided much greater specificity in terms of the injuries and the awards, providing for greater consistency in awards,” he said.
“It also provided ensuring people are appropriately compensated, it had the desirable effect of reducing awards and personal injury cases, bringing them more into line with those awarded in other countries.Mr Hanley said the guidelines are a “key pillar” of the Government’s drive to bring down insurance costs and the Supreme Court’s decision should provide a “more predictable and consistent approach”.
“As well as any future savings the guidelines will create from the reduced awards, bringing them more into line with other countries.”For some time, various companies had complained the high cost of insurance was impacting their ability to operate.“I think it’s important that they shared across society,” he said.
“From business, to sports, arts, community and voluntary groups that really can’t afford to wait any longer.”Minister promises insurance premiums will fall this year