Insurance company chiefs came under fire over hikes in health insurance premiums at a public meeting last night.

The meeting, held at the Heritage Worship Centre on Dundonald Street and organised by the Bermuda Industrial Union, was attended by approximately 70 irate members of the public.

Union boss Chris Furbert invited three insurance company heads to the "last minute" meeting to "put out fires that have been lit" since it was announced by the Bermuda Health Council that rates for basic insurance packages will increase as of May 1.

While three companies were invited, only Gerald Simons of Argus Insurance and John Wight of BF&M were present at the meeting.

Mr. Furbert said that after he appeared on a radio talk show he was approached by Mr. Wight and Mr. Simons, who wanted to hear what the BIU had to say.

"We recognise that insurance goes up every year but Bermuda and the entire world are in hard times," said Mr. Furbert.

"For this reason we sent a letter to insurance companies in February asking them to consider a smaller rate increase this year.

"The BIU received a letter from one provider who said they would increase their rate by 10.75 percent, but that is just the tip of the iceberg. Some companies are increasing their rates by as much as 20 percent.

"Those are extremely high numbers in extremely hard economic times and it will be very challenging for some employers to cover that cost. We recognise that insurance companies have a business to run but so does everyone else. The overall challenge here is quality of life, it will be very hard for people to afford this across the board."

He added he has contacted Health Minister Walter Roban, who assured the BIU that he would send a letter on their behalf to insurance companies voicing their concerns.

Mr. Simons sympathised with the BIU's concerns.

"What we are seeing now is what I have been fearing for some years," he said. "The cost of health care is rising faster than the rate of inflation and is becoming unsustainable. Sooner or later the whole system is going to come crashing down.

"We need to wrap our minds around this and work through it. I wish we had more explicit answers as to resolve the issue but we need to work together in a collaborative fashion to move forward."

And members of the public took the opportunity to vent their frustration with the insurance companies, with one irate man having to be escorted out of the auditorium after cursing and threating to punch a member of the BIU.

"Insurance companies are like legalised mobsters," said one man. "All you do is rob us."

And the crowd reacted angrily after Mr. Simons reluctantly admitted that there is no limit to what insurance companies can charge after being questioned by a member of the public.

"Groceries stores are not restricted from raising the cost of bread," he said. "It is the same with insurance – we are selling a product."

One man demanded that Government step in to regulate the cost of insurance.

"Where is the compassion," he asked. "You guys are trying to squeeze blood from a stone. Nobody has any money right now. When will you (insurance providers) sit down with Government to regulate all of this? We should not be underwriting your profits."

Both Mr. Wight and Mr. Simons blamed doctors' rising prices and employee salaries for some of the increased. Both said that they had been losing money for the past three years.

"Salaries take up three quarters of our profits," said Mr. Wight. "And we have tried to speak to doctors but it is up to the public to voice your concerns to them. And you must hold some health professionals accountable – if you are not getting better, stop going to them. Until we have some kind of collective infrastructure, unnecessary procedures and medication will continue to be prescribed."

At this, one man broke down in tears.

"I am a very sick man," he said. "Every year it costs me between $70,000 and $100,000 for treatment. It really hurts me to hear how all these people in here have to pay so much for so little."

Despite the crowd's animosity towards them, both Mr. Wight and Mr. Simons hailed the meeting as a success.

"The forum went very well," said Mr. Simons. "There were lots of sensitive issues talked about and what people need is information – that is what I was here to provide."

Mr. Furbert agreed "The meeting went extremely well even though it was on short notice. We still have to get the message out but I think we put out some fires even though there are still more burning out there. We hope to schedule more meetings like this."