Inflation figures released by the Central Statistics Office this week show that motor premiums were up 38.3pc in the year to July.
The figures would indicate that the ongoing rise in insurance costs was one of the main reasons that annual inflation hit 0.5%, its highest level in three years. The rise in motor insurance costs means a premium that was €500 last year will now be around €190 dearer.
An inter-departmental working group on insurance costs, headed up by Minister of State Eoghan Murphy, held its first meeting on July 20. However, it is not due to meet again until September 2.
The spokesman said pricing was a matter for insurers but that the working group may identify measures to reduce the cost of claims, a move that would reduce premiums.
Source: www.businessworld.ie
