asked the Minister for Industry and Commerce the average increase in premiums granted for motor insurance since January, 1986; the average loading being applied by insurers to under-25 motorists; if he can confirm that all insurers are taking a fair proportion of all categories of motorists in ratio to their share of the motor insurance market; the applications he has at present before him for increases in motor insurance premiums; if he can confirm that no further premium increase will be permitted for the remainder of the current financial year; if he will give details of recommendations made to him by the advisory body set up to look into the cost of motor insurance; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
28.
As price control was abolished in early 1986, I no longer approve increases in premiums. Instead, insurance companies notify my Department of proposed increases and these are queried if they appear excessive.
This year 14 notifications of increases in motor insurance premiums have been received. The increases applied to general motor accounts were in the main in the range of 5 to 10 per cent. Increases applied to commercial and other particular segments of portfolios ranged in the main from 8 to 35 per cent, reflecting larger losses on these classes.
Loadings on drivers aged under 25 years vary from company to company. They range from 50 per cent to 150 per cent depending on the company and the age involved.
The distribution of different categories of motorists among insurers depends on their portfolio and marketing strategies. Some companies specialise in particular segments. I am not aware that any particular category is being turned away by insurers generally. As the Deputy is aware, cover is available for every category of motorist if necessary via the declined cases agreement.
The Motor Insurance Advisory Board were given, as their main task, the establishment of a statistical base which would yield comparisons of and a basis for the rates being applied to various categories of driver. This complex work is well advanced and the statistical returns from insurers will enable the board to give informed advice on these matters.
The board have already achieved a significant improvement in the lot of certain disabled drivers. In these cases the maximum loading has been reduced to 20 per cent and the loading is removed after two years claims free driving.
Have the Minister's advisory board been afforded full co-operation from all insurers from whom they sought information? Can he give an indication of when we may expect the first report on the recommendations from the advisory board which might lead to some hope for cheaper insurance for the categories mentioned in the question?
The advisory board have received co-operation from the insurers following some discussion as to the form of returns that were to be made when they reached agreement on the statistical basis on which insurers will provide statistics in the coming years. This will give the opportunity for an in depth evaluation on this and we are getting full co-operation on this issue.
When shall we hear from them?
The work on the statistical base is very well advanced so I am now in a position to know the format for a few years and I expect the new statistics will become available—
What about recommendations to reduce the premiums?
We already have recommendations for certain loadings. We do not have any recommendations to date from the advisory board except in relation to disabled drivers. This has primarily been statistical work.
Will the Minister press for these?
I shall.
May I raise on the Adjournment the subject matter of Question No. 24 of 22 October 1986?
I shall communicate with the Deputy.
May I ask that Question No. 29 be retained for priority for the next occasion?
The Deputy may contact the Whips.