Dáil Éireann debate -
Wednesday, 8 Oct 1997

Vol. 481 No. 2

Written Answers. - Motor Insurance.

Thomas P. Broughan

Question:

70 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps, if any, she is taking to promote better competition in car insurance in view of the results of a recently published survey. [15949/97]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney)

The Automobile Association recently carried out a motor insurance premium survey prepared by Lansdowne Market Research which shows a wide variation of quotes, depending on the level of cover, between insurance companies and between the various categories of driver surveyed. These surveys, which are carried out on a regular basis by the Automobile Association, are a useful snap-shot of insurance companies' premium rates taken at a particular period. The results of the most recent survey show a wide spread in the premiums charged to categories of motor insurance policy holders. In each of the categories surveyed the following indicates the differences in price between the dearest and cheapest quote given:

Comprehensive Cover

Category of Driver	Female 25	Male 25	Female 35	Male 35	Female 45	Male 45
Difference in premium	£412	£338	£138	£197	£188	£189

The Deloitte and Touche report on an economic evaluation of insurance costs referred to the competitive nature of the Irish motor insurance market in terms of numbers of companies per head of population compared with, for example, the UK insurance market. Deloitte and Touche's own survey of motor insurance premiums as presented in their report indicated that there was no uniform "market price" for motor insurance due to factors such as differing assessments of claims histories by insurers, strategies towards niche markets, specialisation and segmentation of the market. Their survey showed that the key factors affecting the premium rates applied to the Irish motorist were the individual driver's maturity and safety record. Within these parameters, motor insurers quoted widely different premiums for similar risks. This fact has also been borne out by the most recent Automobile Association survey.