‘Overwhelmingly prohibitive' insurance model must be reformed, say retailers
The organisation, which represents more than 2,500 members, said that a number of current policies, including a proposed 17pc increase in personal injury awards, is a 'regressive step'.
'The Programme for Government's new action plan for insurance reform from 2020 set out 66 actions for reform to bring down the costs for consumers and business and to introduce more competition into the market,' REI said.
However, it claimed this action plan had not resulted in any meaningful change.
According to an REI survey last year, a majority of businesses (86pc) had not seen their insurance premiums come down despite the introduction of government reforms.
It also found that premiums had increased for 67pc of retailers despite 60pc saying they had no claims over the previous five years.
Jean McCabe, chief executive of REI, said the costs were unsustainable for businesses that were already struggling with rising premiums.
'The insurance industry in Ireland is overwhelmingly prohibitive for businesses, with soaring premiums adding to a multitude of unsustainable costs,' said Ms McCabe.
'The last action plan for insurance reform promised meaningful change but unfortunately this was not delivered. Now, the new Government has a chance to turn the dial on an industry that is not delivering for its customers.
'Of course, people who have legitimate claims for serious injuries need to be compensated, but we must also acknowledge that fraudulent claims are becoming more sophisticated and pose a huge issue for businesses.'
Ms McCabe claimed there is a rising number of cases of people misusing the current insurance model, and said the REI has found that 'bogus claims' are on the rise.
'Bogus claims for slips, trips and falls are an ongoing problem, but businesses are also reporting a rise in bogus defamation claims, whereby customers deliberately trick a staff member into confronting them over suspicious behaviour, only to accuse them of defamation afterwards,' she said.
'The fact that there are as many defamation claims in Ireland as in England, which is many times larger in terms of population size, shows how out of control the marketplace has become.'
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