Jim O'Keeffe
Question:49 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment his views on whether high insurance costs are a factor inhibiting job creation; and the proposals, if any, he has to reduce these.
Written Answers. - Insurance Costs.
High costs, whether insurance costs or any other costs, have an adverse impact on the traded sector of the economy in terms of output, employment and the ability of firms to compete in the market-place.
The cost of insurance is substantially determined by the frequency of claims and the cost of settling those claims. Effective risk management by businesses, including greater attention to safety by employers and employees in the workplace and on the roads, can yield positive results in terms of lower insurance costs.
The Government continues to play its role in attempting to improve the environment for insurance by encouraging greater safety in the workplace through the National Authority for Occupational Safety and Health. Similarly, following the work of the Inter-Ministerial Group on Motor Insurance, considerable Government attention is being given to road safety.
The Garda Síochána, with the support of the Minister for Justice, continue to apply stricter enforcement of the road traffic laws and the Minister for the Environment will shortly be proposing substantial improvements to road traffic legislation. Also, the Minister for Justice is preparing further changes to improve the operations of the Courts in resolving personal injury actions by means of a series of legislative changes aimed at bringing about a more effective and efficient system for dealing with liability insurance claims.
The impact of all of these measures on the cost of insurance will ultimately depend on the timing and extent of their implementation and, most importantly, the attitude of the general public, including business and employees, and the legal and other professions.
Let me add that the insurance industry itself also has a role to play especially in terms of controlling costs within its own ambit so that insurance policyholders do not incur avoidable costs.