Insurance companies are being accused of making bumper profits, with claims they're earning far more than officially reported.

Donegal TD Pearse Dorthery says figures show insurers are making millions more by using standard profit definitions rather than those applied by the Central Bank.

He says in motor insurance alone, this amounts to an extra 114 million euro and has called for the industry to be challenged on price gouging.

Speaking in the Dáil, the Donegal deputy said he has engaged with the Central Bank on the issue and warned its definition of operating profits understates the true scale of insurers earnings.