IRISH CONSUMER GROUP CALLS FOR WINDFALL TAX ON INSURERS

The Consumers Association of Ireland (CAI) has called for a windfall tax on insurers after accusing them of “excess profiteering”. It claimed that the industry’s co-operation with governmental attempts to reform the market had been “superficial”. In its October edition of Consumer Choice , article author Brendan Murray claimed that “insurers have long milked the cash cow that is the beleaguered Irish consumer and, flush with cash after a year of record profits, they must slash premiums immediately and restore some consumer confidence” The CAI also said that consideration should be given to the idea of having brokers work only on a fee basis, stopping them earning commission. It claimed that this would produce transparency and independence”. Irish Insurance Federation CEO Mike Kemp responded that the insurance industry was a cyclical business and that over a five-year period profits amounted to only 5% of premiums, a return on capital far lower than achieved by Ryanair.