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Motor insurers are reported to have made a profit of millions of euros this year despite lockdown

DUBLIN: Motor insurers are reported to have made millions of euros in profits this year due to a collapse in claims. According to the report, insurance companies have benefited from the lockdown.

A new analysis by HelloSafe, a Paris-based comparison website, estimates that there has been a 35% drop in overall motor claims nationwide compared to last year. They say there has been a shortfall of around €300m. This has led to calls for a big cut in premiums.

The pandemic has led to a significant reduction in car travel and a reduction in accidents. The functioning of the courts was also severely disrupted by the pandemic, which led to fewer litigated settlements.

HelloSafe, a leading UK firm, said the decline in claims was based on recently published central bank data and information from insurers operating in the UK and Ireland.

It is considering launching an insurance price comparison operation here.

The site estimates that the car insurance industry in Ireland will save €287 million by 2020. According to the site, in Dublin, the claims fell by 49%, leading to a saving for insurers of €110 million. The claims also fell sharply in Galway, Cork and Limerick. There was also a sharp decline in car-related claims in Kildare and Offaly. This will lead to a reduction in premiums, said HelloSafe chief executive Antoine Fruchard.

Mr. Fruchard said competition between insurance companies will increase in the coming months. The central bank had earlier reported that motor insurance companies had made a total profit of €142 million in 2019. Last year it was €130.

According to Central Bank statistics, the average motor premium is currently priced at €653. Premiums have increased by 35% in the last 10 years.

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