Junior Minister Kelly launches consumer council report on cost of insurance

Junior Minister Gerry Kelly MLA has called for a fair deal for consumers here in relation to the cost of insurance.

He was speaking at the Stormont Hotel where he launched the Consumer Council’s report on the “Cost of Insurance in Northern Ireland”.

The research found that households here buying car, contents and building insurance paid more than households elsewhere and, in particular, found that consumers in deprived and rural areas pay more.

Mr Kelly said: “Insurance is part of all our personal financial budgets and provides vital protection, particularly in today’s uncertain financial climate. It is crucial therefore that we stand firm for the rights of our consumers to make sure that they are getting a fair deal when compared to other regions.”

Mr Kelly congratulated the Consumer Council for highlighting the importance of this issue and for asking the appropriate questions with regards to why insurance costs are higher in the North of Ireland.

He went on to say: “It was pleasing to note that government departments continue to work closely with the FSA and key stakeholders, including banks, credit unions and community groups and the General Consumer Council in advancing the work of the Financial Capability Partnership.

“Much of this work links directly to tackling poverty and social exclusion.

“Financial capability though is not just about poverty – everybody, irrespective of their income needs to be in a position to take well informed decisions with regard to their finances, a point which has been emphasised of late with the increasing cost of living.

“In light of the increasing financial pressures we are all currently facing, initiatives such as the Partnership are extremely important in ensuring consumers are better informed and are more confident in taking financial decisions.

“Insurance is one such area where we can all do with assistance. We should all work together to help consumers understand the importance of insurance, build their confidence to shop around, and demand a good deal hopefully making sure that insurance is fair, affordable and accessible for all.”

Notes to Editors:

1. The Consumer Council commissioned the Financial Inclusion Centre to undertake the research project into the cost of insurance in Northern Ireland. The research found that households in Northern Ireland buying car, contents and building insurance paid more that households elsewhere in the UK and, in particular, found that consumers in deprived and rural areas pay more.
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