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

Debate contribution by Mr Daniel McCrossan on 14 May 2024.

MLA

Mr Daniel McCrossan

Party at the time

Social Democratic and Labour Party

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 4490400

Read the official Assembly record

Text

I thank my colleague for tabling this important motion. I raised the issue on the Floor in the first week that the Assembly and the institutions returned. It is an important issue that we have been hearing about for some time, but the situation has worsened. When I raised it publicly at the earliest possible opportunity, there was a bit of a reaction, but, ultimately, as the months have gone on, I have heard from more people about the extortionate cost of insurance. I have personal experience from when I was due to renew my car insurance. To avoid being put out of the Chamber, I will not repeat my reaction when I phoned to renew the insurance, as it was shocking. My insurance had gone up by 65%, which is extortionate, unjustified and could not be explained. There had been no claims; I had simply changed the car, and that was the result. That is the reality for a lot of people, but we have to be honest about the discriminatory effect that that has on low-income families, the working poor, the people who go out to make ends meet every day and the carers who look after people but are not remunerated sufficiently for the cost of the travel to do that important work. Amongst all that, however, is the hidden cost of insurance that means that those people must decide whether they can afford to do the job. The cost and consequences of that for our society and constituents are huge. I have reached out to many insurance companies about the issue, and I have written countless letters. The SDLP raised it at Westminster as well. However, it is interesting that, when I mentioned it for the first time publicly, the Association of British Insurers almost instantly reached out to me without being prompted, and that showed me that there was nervousness and anxiety about what was going on in Northern Ireland, because, in the absence of the institutions, we did not have the opportunity to shine a spotlight on exactly what was happening. There is a need for the Financial Conduct Authority to investigate what is happening with insurance companies. It is my opinion that they are bogging the hands into the pockets of the people in Northern Ireland more so than those of the people in Scotland, England, Wales or anywhere else. When I asked for an explanation of why that is happening, I was told, as Mr Tennyson rightly articulated, that it is because of the cost of parts going up or the cost of replacement cars for people whose vehicles are in getting repaired. It just does not stack up. In my opinion, the Association of British Insurers is nervous around the issue. That is enough for me to keep pushing at the bruise. We need to get to the bottom of why Northern Ireland is being treated differently from anywhere else. The issues relating to young people have, rightly, been pointed out. The majority of young people are being penalised and punished. They are out getting a part-time job and trying to stay in education and keep a car on the road. When you live in such a constituency as mine — West Tyrone — you do not have the luxury of public transport links that are sufficient to meet the demands of the local population, so those young people rely heavily on their vehicle. That is putting pressure on parents to support the young people in not only their education but in their means of travel to get to that place of education and to return home. That is before we even touch on the wider issues with insurance for businesses. I declare an interest as a director of a company. We have seen a huge rise in the level of insurance premiums for businesses. It is an extortionate rise — thousands of pounds more than the previous year, without any justification. An insurance company can come along and say, "We're not insuring you because there was a flood 30 miles down the road". Therefore, you are not covered for that risk, but the insurance company will increase your premium by maybe £5,000, £6,000 or £7,000. It is absolutely ridiculous; as has been described by other Members, it is extortion. We need to call it out for what it is, because it is unacceptable, and it is causing a huge level of pain to our constituents, who are already struggling with the cost of food prices and the cost of living generally, with rising mortgage, rent and electricity costs. It is huge. The insurance companies saw an opportunity in the cost-of-living crisis: they jumped on the bandwagon, slapped the price up and did not care about the consequences for our people. I will give Members a quick insight: AIG paid out its highest dividend since 2007; Allianz's profit jumped 5·7% to €14·2 billion; Aviva's profit rose 8% to £715 million; AXA is earning 23% per share; and NFU Mutual had a profit of £220 million. They are making huge money off the backs of ordinary people. Today, in the House, whilst we cannot resolve the situation, we can call for action. I am delighted that we are united on that journey.

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

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 10:27 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

Disagree with this assessment?

Classifications can be challenged. A person reads every challenge, and any change is recorded publicly above with its reason.

Challenge this classification