I understand that there has been a gradual increase in the level of car ownership among the under 30s in recent years. The Irish Insurance Federation inform me that while there are no statistics available yet for 1998 or 1999, it is estimated that in 1997 approximately 142,000 people under the age of 30 took out compulsory motor insurance in their own name. The average pre mium for this category of driver at that time was approximately £715.
The cost of motor insurance for the driver in his or her twenties is reflective of the difficulties being experienced by young people in securing motor insurance and, indeed, the high cost of compulsory motor insurance cover. I understand this situation is directly attributable to the adverse claims experience of young, especially male, drivers as a risk category. The 1996 Deloitte & Touche report on an economic evaluation of insurance costs found that the average cost of an insurance claim for young drivers is twice that for the more mature motorist and that the former are responsible for over three and a half times the total average claims costs incurred for motorists in the more mature age group.
My re-establishment of the Motor Insurance Advisory Board was a major initiative aimed at providing us with information and advice on trends in motor insurance costs and with policy recommendations for addressing those costs. The board, whose expanded membership includes a member representing young drivers' interests, has undertaken an ambitious programme of work and research, particularly in relation to the basis of charges to young drivers.
The primary focus of initiatives aimed at reducing the cost of motor insurance for young drivers must be on reducing the frequency of accidents and the associated cost of claims. The key to this is to create appropriate conditions for improving their standards of driving and their appreciation of road safety.