Michael Ring
Question:154 Mr. Ring asked the Minister for Enterprise and Employment the outcome of the proposal regarding the Insurance Reform Unit; if it was accepted by the Government; and if he will make a statement on the matter. [3141/94]
Ceisteanna—Questions. Written Answers. - Insurance Reform Unit.
My primary responsibility as the insurance supervisory authority is to ensure that authorised insurers meet their statutory reserve and solvency requirements. The purpose of these financial requirements is that moneys are available to meet claims when they arise. In order to meet these requirements and operate on a viable basis insurers must be free to set their insurance rates, including their public liablity insurance rates for community bodies and their motor insurance rates for public service vehicles, in the light of their underwriting experience.
In 1993 I established the Insurance Reform Unit within the Insurance Division of my Department to research the reasons for the high level of insurance premia in Ireland as compared to competing economies and in the light of the findings of this research, to formulate proposals designed to achieve a substantial reduction in insurance costs in this country.
I would refer the Deputies to my reply to Questions Nos. 62 and 69 on Wednesday, 26 October 1994, which reply stated that my Department is at present finalising proposals which seek to address the high cost of insurance. Legislative initiatives to implement these proposals, which cover motor, employers' and public liability insurance, are a matter for Government.