Debate contribution: Insurance Costs: Reductions for Workers, Families and Businesses

Debate contribution by Mr Cathal Boylan on 14 May 2024.

MLA: Mr Cathal Boylan
Party at the time: Sinn Féin
Date: 14 May 2024
Type: Debate contribution
Business: Private Members' Business
Heading: Insurance Costs: Reductions for Workers, Families and Businesses
Assembly identifier: Official Report component 4490371

Text

I beg to move
Whilst the issue lies outside the Chamber, it is vital that we bring the subject to the Chamber and have this conversation. I have heard people talk about the fact that we have not brought any legislation to the Chamber for a period of time. The motion is important because it affects constituents across the North of the island. Rising insurance premiums place huge financial strain on workers, families and young drivers.
They are occurring at a time when people are struggling day-to-day during what is an unprecedented cost-of-living crisis. Insurance price hikes are ripping off families and hard-pressed workers. The average insurance cost for drivers is £1,000. Young people are quoted even more expensive costs. It is devastating for young people who have passed their driving test after studying and practising hard to be quoted ridiculous prices for insurance. Average car insurance prices are 57% more expensive than they were last year, and they have doubled for some drivers. Those quotes have been a nightmare for so many people, especially for those who depend on their car for work, to support their family and to get about in general. They have been left with excess costs through no fault of their own, but they have had to bear them because they depend on their car in their daily life.
My office has been contacted by many constituents who are feeling the effects of those unfair rises. They are affecting everyone when times are already tough. Although inflation has impacted on costs, as it has on most things, the hike in premiums goes beyond the rate of inflation. People also feel that they are experiencing discrimination, as insurance companies are basing their quotes on factors that are beyond the customer's control. Some drivers have been charged significantly more than others based on their home address rather than on their driver history. That has been felt particularly by those who live in areas of high deprivation such as west Belfast and the border regions. There is frustration that many customers have seen their premiums rise even if they have not been involved in an accident or received any penalty points. They feel that they are being punished despite their exemplary record on the road. Rising premiums are impacting on everyone who depends on a car, from teachers to nurses and from taxi men to traders. This is happening during a cost-of-living crisis, when people are already paying increased costs for nearly everything else, including fuel. It is clear that insurance companies need to do better by the people who have no choice but to pay outrageous insurance hikes. The Executive have no powers over insurance, as it sits within the remit of the British Government. The responsibility for regulating the market lies with the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA) and the Competition and Markets Authority (CMA).
I absolutely agree with the Member. In the debate, we have to try to get the message out however we can. As another member of the Committee for Infrastructure, he will know that we wrote to some of those institutions, and, indeed, that was my next point. It is worth noting that the Committee for Infrastructure has written to a number of those authorities on the issue of price hikes. The regulatory bodies should fully examine and scrutinise the insurance industry over the ridiculous cost increases. Sinn Féin supports an investigation into insurance price hikes in order to hold the industry to account. People have had enough of being ripped off. Sinn Féin will continue to stand up for hard-pressed workers and families. I ask those who will speak in the debate, and the Assembly as a whole, to support the motion.

625 words. Text as published by the Northern Ireland Assembly.

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