Vol. 400 No. 2
90 Mr. Hogan asked the Minister for Industry and Commerce if he will consider the harmonisation of an insurance cover between member states in the context of negotiations post-1992; if the completion of the internal market will imply an increase or reduction in premia for the Irish insurance consumer; and if he will make a statement on the matter.
The question of the harmonisation of insurance cover between member states does not apparently arise other than in the context of compulsory insurance classes such as third party motor insurance in respect of which responsibility lies with my colleague the Minister for the Environment.
Over 80 per cent of non-life insurance undertakings operating in this country are foreign owned while the figure on the life side is over 90 per cent. When the Internal Market is complete further foreign insurers will have access to the Irish market thus intensifying competition on price, cover and quality of service.
Insurance undertakings, indigenous, foreign established or foreign services must set their premium rates to match their liabilities. There is no evidence to suggest that foreign insurers would subsidise the Irish market with premium rates which could not meet their liabilities.It can be expected, however, that good risks will generally benefit from lower quotes.
