Dáil Éireann debate -
Wednesday, 7 Oct 1992

Vol. 423 No. 1

Written Answers. - Motor Insurance Costs.

Bernard J. Durkan

Question:

73 Mr. Durkan asked the Minister for Industry and Commerce the progress/ success of the Ministerial Committee regarding motor insurance costs; whether the committee has concluded its work; if it expects to publish its report; if an assessment has been done into the projected reduction of motor insurance premia as a result of the implementation of any proposals arising from the committee; and if he will make a statement on the matter.

Jimmy Deenihan

Question:

78 Mr. Deenihan asked the Minister for Industry and Commerce if he will make a statement on the continuing escalating cost of motor insurance for young drivers; and if he has satisfied himself that measures which he introduced to control the cost of insurance are adequate.

Bernard J. Durkan

Question:

113 Mr. Durkan asked the Minister for Industry and Commerce the actions taken to date by the Government to reduce the cost of motor insurance; the success or failure of such measures, if any; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

I propose to take Oral Questions Nos. 73 and 78 and Written Question No. 113 together.

The Inter-Ministerial Group on Motor Insurance, which I chaired, identified a list of measures to improve the environment for insurance, including motor insurance for young and more mature drivers. The group has been a success in the sense that the Ministers for Justice and the Environment are in the process of initiating a series of measures designed to improve safety on the roads, reduce uninsured driving, and improve the efficiency of the Courts in resolving personal injury actions. Where the implementation of measures requires legislation, such legislation has been, or will be, proposed by the Minister for the Environment or the Minister for Justice. The Deputies will appreciate that questions about progress on such legislation are a matter for the Ministers concerned.

The Deputies should be aware that a comprehensive list of the measures identified by the inter-ministerial group to improve the environment for insurance, has already been given to this House, notably by myself and the Minister for the Environment on 2 and 3 July 1991. Therefore, the recommendations of the Group are detailed in the records of this House and consequently are in the public domain.

To attempt to quantify the overall impact of the measures identified by the inter-ministerial group on insurance premia would not be feasible. Clearly the impact of the measures on insurance premia will depend on the timing and the extent of their implementation and most importantly the attitude of the insurance industry, the legal profession, other professionals including doctors, and the general public including business, and road users.

I would like to remind the Deputies that my primary responsibility as the insurance supervisory authority is to ensure that insurance companies maintain their statutory solvency and reserve requirements. I do not set, or indeed approve, insurance rates. This is an underwriting matter which is the responsibility of insurers to decide in the light of their particular circumstances and assessment of the market.

In conclusion might I add that should it be considered helpful to the objective of improving the environment for insurance the inter-ministerial group may meet again.