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IHF Calls For Urgent Action On Rising Insurance Costs

Published on Jun 11 2019 9:45 AM in Hotel tagged: Featured Post / IHF / Irish hotels federation

IHF Calls For Urgent Action On Rising Insurance Costs

The Irish Hotels Federation (IHF) has announced that it is calling on the government to take action to address the cost of insurance.

According to the IHF, new research has revealed that 62% of its members have seen further hikes in insurance costs over the last 12 months. Of these, the average increase in premiums was reportedly 28% year on year.

90% of the IHF members that said they had say seen insurance cost hikes in the past year also said that they are concerned about the impact these costs will have on their business.

"Unsustainable"

IHF President Michael Lennon stated, "These increases are unsustainable. Exorbitant insurance costs are curtailing the ability of hotels and guesthouses to re-invest in their businesses with knock-on effects for the tourism industry.

"Slow progress by the government is contributing to a 'claims culture' which is getting out of control. This poses an enormous challenge for businesses and wider society. The time for foot dragging has passed. We need decisive action by government to tackle insurance costs, particularly in relation to the handling of personal injury cases in Ireland and the excessive levels of awards being made which are four to five times higher than in the UK."

Judicial Council

Lennon has called on the government to give greater urgency to setting up the judicial council to review levels of awards for personal injuries. He said, "Awards for soft tissue injuries must be brought down significantly in line with international norms."

Zero Tolerance Approach To Fraud

Furthermore, Lennon asserted that a zero tolerance approach to fraud is required in order to create an effective deterrent against exaggerated or misleading claims. He commented, "It is vital that a dedicated garda resource is created specifically tasked with investigating fraudulent cases for potential prosecution."

© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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