The Irish Hotels Federation (IHF) has expressed ‘serious concerns’ about the cost of insurance in Ireland and the impact that it is having on hotels and guesthouses throughout the country.
The federation was responding to the Central Bank’s latest NCID Liability Report, which shows a 24% increase in insurance costs for the sector between 2020 and 2022.
The IHF warned that this comes at a time when hospitality businesses are already struggling with increases in the cost of doing business, including government-controlled costs.
‘Exceptionally High’
“The exceptionally high cost of doing business in Ireland is one of the most serious challenges facing our sector,” said Michael Magner, IHF president. “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.”
Magner added, “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.”
Impact
Research carried out by the IHF shows that premiums continue to increase, with some 84% of hotels and guesthouses noting that they are concerned about the impact of insurance costs on their business over the next 12 months.
Magner noted that rising premiums have hit the hospitality sector particularly hard, with accommodation and foodservice businesses seeing a 24% increase in insurance costs between 2020 and 2022.
‘Skyrocket’
“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,” said Magner.
“This is unacceptable and must be tackled head on, to ensure a fairer and more competitive insurance market.”
