Car insurance costs will probably rise after Dublin-based Insurer FBD warned it now expects to make an operating loss for the year as a result of a challenging claims environment.
In a statement, FBD said it was being forced to pay more money than expected to cover the cost of some motor accidents dating back a few years.
As a result, the insurer is guiding a full-year 2014 operating loss per share of zero to 10pc. Its shares slumped as much as 21pc in Dublin yesterday.
"Given the unprecedented volatility in claims costs in recent months, the group is reducing the forecast result for the final quarter of the year by €10m," the statement said. The company has seen a "significantly higher" number of medium-sized injury claims, it added.