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

Debate contribution by Mr Philip McGuigan on 14 May 2024.

MLA

Mr Philip McGuigan

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 4490415

Read the official Assembly record

Text

Philip with one L agus

Phillip with two Ls is probably the easiest way to distinguish. I was not expecting to speak. I am just counting, and six Members have spoken so far. John Hume used to talk about a "single transferable speech", but, on this occasion, Members added in the names of family members or constituents. Everybody talked about exactly the same thing, and that highlights just how important an issue this is and how it is affecting all the people whom we represent across the North. As Members said, it is important to highlight, as the wording of the motion does:

"the unprecedented increases in insurance premiums for home, business and car insurance, which are crippling workers, families and small businesses, many of whom are already struggling with the cost-of-living crisis ... many motorists have seen their insurance quotes increase significantly even if they have not had an accident, a speeding fine or a change in circumstances".

I, like others, can quote numerous examples of people who have come into my constituency office to say that their insurance quotes are more than double the previous cost of their insurance. I can also point to the increasingly ludicrous high quotes given to young drivers on passing their driving tests. Workers, families, businesses and people for whom having a car is essential in order to work, attend hospital appointments or run their kids to school are already dealing with a cost-of-living crisis and a crisis in the cost of doing business. They cannot help but feel that they are not being treated fairly. Indeed, many feel that they are being ripped off by astronomical insurance premiums. As other Members pointed out, the average insurance policy for drivers in the North is now over £1,000, which would have been unthinkable just a number of years ago. For many younger drivers, it can be £3,000. The rising cost of insurance is simply unsustainable. Customers cannot be expected to keep paying those costs alongside increased fuel prices and other costs. Insurance companies need to do more to protect their customers. It is simply not acceptable for them to pass the buck and say that it is out of their control. Insurance is a reserved matter — it is under the control of Westminster — so, unfortunately, the Executive have no authority to intervene in the insurance market. However, as other Members said, we can send a strong message to those who should be taking responsibility. I am talking about the FCA: it needs to take responsibility and investigate. Thus far, the response and action from the FCA have been lacklustre, to say the least.

As we debate the motion today, none of those regulatory bodies has carried out an investigation of the insurance industry to ensure that customers in the North are not being subjected to unfair business practices. That needs to happen. If it does not, those bodies risk undermining public confidence in their ability to hold the industry to account and protect customers.

The British Government also need to step up. So far, they have done extremely well out of the crisis through the collection of the insurance premium tax, which has doubled from 6% to 12% in the past decade. Last year, it raked in a staggering £8 billion for the British Treasury, an increase of 10% on the previous year. People have done the calculations: it has added an average of £220 to household bills every year. The FCA and the British Government need to take action to support workers and families. We will continue to press the insurance industry on those spiralling prices and stand up for workers and families who are struggling to afford those costs. I talked about the single transferable speech. My contribution has added to what has already been said, and I will now quickly encapsulate what others said. My colleague Cathal opened the debate and talked about the spiralling costs, as did everybody else, and the impact that they are having on workers and families who are already struggling. He mentioned geographical discrimination and pointed to the West Belfast constituency in particular. Diane Forsythe talked about young drivers, in particular, being priced out of the market. She said that, in some cases, the insurance premium is more than the cost of the car. A few Members gave examples of that. She also said that we could learn from the example of other countries, such as Australia. Eóin Tennyson talked about how the industry has been trying thus far to justify its price increases but that, when they are looked at closely, its arguments simply do not stack up. He dissected its arguments. He said that, while this is a reserved matter, we could have a role in better education and the promotion of driver safety. John Stewart talked about the need for the further regulation of insurance companies. He said that the increases were having an effect on the most vulnerable in particular. I think that everybody came to the conclusion that, in this case, the most vulnerable and lowest-paid working families suffer the most. He said that he did not understand how the FCA can justify the fairness principle, and he gave examples. Daniel McCrossan talked about his experience, where his insurance went up by 65% despite him having made no claims. Again, he talked about the discriminatory effect on low-income working families. He and Phillip Brett said that the ABI reached out to them after they raised the matter. As Phillip said, the ABI is coming to the Economy Committee tomorrow. John also mentioned that insurance premiums for not just car drivers but businesses continue to rise extortionately. He pointed out that it not the case that premiums need to rise; he clearly explained that the dividends and profits of a number of the companies continue to rise and that insurance companies continue to make huge profits. Phillip Brett talked about how the insurance companies are coming to the Economy Committee tomorrow after he and others wrote to them. He talked about the unacceptable levels of the price hikes and said that people in his constituency of North Belfast cannot continue to afford paying for car insurance alongside paying for heating, petrol and other cost-of-living pressures. He also referred to businesses being hit. He gave the example of his nephew's car insurance being three times the cost of the car. He talked about the need for the Assembly to have a united voice in sending a clear message. That has certainly been the key point of the debate. Everybody said the same things and articulated the impact that this is having on the people whom we represent. The people who are supposed to be looking after the community and regulating insurance companies do not seem to be doing a very good job, and they need to be held to account. That was the basis of the debate.

1,156 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.

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