Dáil Éireann debate -
Wednesday, 7 Oct 1992

Vol. 423 No. 1

Written Answers. - Public Liability Insurance Costs.

Bernard J. Durkan

Question:

74 Mr. Durkan asked the Minister for Industry and Commerce if any evaluation of public liability insurance costs has been undertaken by his Department or agents thereof; if comparisons on public liability insurance in this country have been made with any, or all, of the other EC countries; the result of such comparisons; and if he will make a statement on the matter.

Bernard J. Durkan

Question:

115 Mr. Durkan asked the Minister for Industry and Commerce if he will outline the impact on industry in this country of public liability insurance costs as compared with each of the other EC member states; and if he will make a statement on the matter.

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

I propose to take Questions Nos. 74 and 115 together.

My Department has not sought to have evaluations of the sort referred to by the Deputy carried out specifically for public liability insurance. However, I would point out that personal injury compensation costs can constitute a significant proportion of the costs of public liability insurance claims. The Deputy should be well aware from numerous discussions in this House that personal injury compensation costs in this country are out of line with the levels of such compensation in other countries.

As the insurance supervisory authority I must add that the cost of insurance, including public liability insurance, is substantially determined by the frequency of claims and the average cost of settling claims. Clearly the cost of such claims can only be met by insurers if the premiums received adequately reflect the cost of such claims. Furthermore the underwriting losses on liability insurance as a whole have been increasing in recent years.

While the Government will continue to consider initiatives designed to improve the environment for insurance, including liability insurance, it is unrealistic to expect that premiums will not reflect the cost of claims. Insurance proposers and indeed the general public can and, in my view, ought to assist the process of improving the environment for insurance by increased attention to safety and by perhaps a more considered approach to the quantum of compensation.