Vol. 500 No. 4
125 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that motor insurance costs are as competitive as in other EU member states; and if she will make a statement on the matter. [4424/99]
A survey comparing the price of insurance premiums among various categories of driver in the UK, Denmark, France, the Netherlands and Ireland was undertaken by Deloitte & Touche in its report on and economic evaluation of insurance costs in Ireland published in 1996. This survey was based on premium quotations obtained from a number of insurance companies in each of these countries in respect of the years 1990, 1992, and 1994, (1995 in the case of Denmark).
The survey found that premium rates for adult drivers in the UK were 48 per cent lower, France 21 per cent lower, Denmark 10 per cent lower, and Holland 6 per cent lower than corresponding rates in Ireland. Premiums in Holland and Denmark were not significantly lower than Ireland and the survey found that the gap between Irish and other EU rates had been narrowing since 1990. Danish rates were expected to overtake or exceed Irish rates in the short-term.
The detailed results of the comparative survey are published in the Deloitte & Touche report.
With regard to comparisons with the UK market, the difference in premiums was found to be broadly proportional to the difference in motor claims costs in each State. Although UK drivers lodge more claims – car theft is more common in Britain – the average Irish motor claims estimate was over four times the UK average.
The consultants found that the UK's lower average claims cost was attributable to the fact that the UK insurance market experienced relatively more claims involving low cost damage to vehicles partly because they have more urban driving characterised by low-speed "fender bender" collisions in traffic. Ireland, on the other hand, has a large rural road network and a lower traffic density, nine private cars per kilometre of road as against 56 in the UK, which increases the proportion of high-speed accidents involving personal injury in Ireland.
The cost of claims caused by uninsured drivers is the same in both jurisdictions. Garda Síochána statistics showed that, at the time of publication of the Deloitte & Touche report 6 per cent of Irish motorists were uninsured. According to latest Department of Environment and Local Government statistics this figure has now fallen to 4 per cent.
The Deloitte & Touche report found that, for most categories of driver there is a competitive market for motor insurance in Ireland. Drivers belonging to groups characterised by maturity and good claims experience have seen their premiums reduced in real terms since 1990. Young drivers throughout the EU are assessed, on the basis of insurers' claims experience, as a high risk category. Consequently, they will have limited choice of insurer and face high premium costs in Ireland, as elsewhere.
