The Irish Hotels Federation (IHF) has voiced serious concerns about the ongoing excessive cost of insurance in Ireland and the impact this is having on hotels and guesthouses throughout the country. This comes at a time when hospitality businesses are already struggling with eye-watering increases in the cost of doing business, including Government-controlled costs.
Responding to the Central Bank’s NCID Liability Report published today, IHF President Michael Magner said: “The exceptionally high cost of doing business in Ireland is one of the most serious challenges facing our sector. This includes insurance costs, which continue to increase at alarming rates. Despite insurance reforms introduced by the Government, businesses on the ground have yet to see any tangible benefits in relation to their premiums. Much more needs to be done to ensure savings are passed on. This must go hand-in-hand with a renewed effort by Government to attract additional insurance providers into the market.”
“As evidenced by the Central Bank’s report, we are seeing a significant increase in profit margins for insurance companies while legal fees also skyrocket. This is unacceptable and must be tackled head on to ensure a fairer and more competitive insurance market.”
Mr Magner noted that rising premiums have hit the hospitality sector particularly hard, with accommodation and food service businesses seeing a 24% increase in insurance costs between 2020 and 2022.
This is in addition to significant increases in previous years. Meanwhile industry research carried out by the IHF shows that premiums continue to increase, with some 84% of hotels and guesthouses saying they are concerned about the impact of insurance costs on their business over the next 12 months.
