Written Answers. - Motor Insurance.
Seán Haughey
Question:
101
Mr. Haughey
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the efforts, if any, she is making to reduce high motor insurance premiums for young drivers; and if she will make a statement on the matter.
[11673/99]
The key to reducing insurance costs for young drivers is to create appropriate conditions for improving their standards of driving and their appreciation of road safety.
A number of initiatives are in place and are being taken to improve driving standards and safety awareness among all drivers, including young drivers. The Irish Insurance Federation, in conjunction with the Driving Instructors Register, has introduced a scheme of insurance premium discounts for the young driver on completion of a required number of driving lessons. The National Safety Council, in co-operation with the Garda, continue to promote anti-speeding and anti-drink driving media campaigns including road safety educational programmes for secondary school students. I have also exhorted my colleague, Deputy Dempsey, Minister for the Environment and Local Government, to pursue his Department's examination of a graduated licensing system for learner drivers.
In addition, I have re-established the motor insurance advisory board which is to advise me on the charges for motor insurance and the methods for providing motor insurance between different risk categories of drivers having regard to accidents and claims. The expanded membership of the new board, which includes a member representing young drivers' interests, is broadly representative of all of the interests concerned including road safety education and enforcement experts.
Certain concessions to young drivers have been introduced previously by major insurers in the Irish market against the background of increasing underwriting losses in motor insurance. The 1997 annual insurance report prepared by our Department, showed that motor insurance underwriting losses increased from £90 million in 1996 to £114 million in 1997. The deteriorating underwriting situation resulted in some insurers implementing increases in certain insurance categories in 1998.
In those circumstances, there is clearly no soft option for reducing motor insurance premiums for young inexperienced drivers. As a group, they represent a very high risk for insurers and many insurance companies are reluctant to quote for that risk. As in any other branch of insurance risk, reductions in premiums can only be achieved by improved safety standards. In the case of young Irish motorists, the inculcation of safer driving standards and education in driving skills and the early acquisition of a driving licence, is the key to reducing their high accident rate which, in turn, should lead to lower premium quotations.
