asked the Minister for Industry, Trade, Commerce and Tourism the percentage premium increase per annum permitted to insurance companies in this country from 1981 to 1985; and if he will agree that in a case (details supplied) the increases are in excess of the statutory allowance for such premiums.
Written Answers. - Insurance Premiums.
30.
In view of the details supplied by the Deputy I presume he is specifically concerned with increases in household contents premium rates in the Dublin area.
For many years prior to 1983 the contents premium rate charged by virtually all household insurers was 0.3 per cent or £3 per £1,000 sum insured or part thereof. This market situation altered substantially in 1983 and in subsequent years, as a consequence of sharply increasing losses which were being incurred from underwriting this type of business. As a consequence of different increases approved for individual companies, the contents rate for Dublin area householders now ranges from 0.3 per cent to 0.9 per cent with variation in the standard and extent of cover available. The simple average contents premium rate in the Dublin area works out at 0.65 per cent or £6.50 per £1,000 sum insured. Outside of Dublin, the rate varies between 0.3 per cent and 0.45 per cent. The specific increases which have been experienced in the case referred to by the Deputy are in line with those which the insurer concerned has been authorised to charge. Part of the increase in premia in the particular case referred to was due to the increase in the sum insured over the period.