Dáil Éireann debate -
Wednesday, 22 Nov 2000

Vol. 526 No. 4

Written Answers. - Insurance Industry.

Proinsias De Rossa

Question:

147 Proinsias De Rossa asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the call made by the National Youth Council of Ireland for an independent regulatory authority for the insurance industry to ensure that consumers, especially young drivers, would get a better deal; her response to the submission; and if she will make a statement on the matter. [26560/00]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The Government has agreed, in principle, to the establishment of a single regulatory authority for the financial services sector, including insurance. The report of the implementation advisory group on the single regulatory authority envisages a strong consumer protection role for the authority. The report recommends the appointment of a statutory consumer protection director, the creation of a statutory ombudsman scheme and the establishment of a special consumer panel.

Discussions have taken place between officials of our Department and of the Department of Finance. The matter is now being considered by myself, the Tánaiste and the Minister for Finance. When the outstanding issues have been settled, the Tánaiste and the Minister for Finance will bring proposals to Government for consideration and decision.

It is important to emphasise that the difficulties being experienced by young people in securing motor insurance are directly attributable to the adverse claims experience of such drivers as a risk category. A number of initiatives are in place and are being taken to improve driving standards and safety awareness amongst all drivers, including young drivers. In addition, I re-established the Motor Insurance Advisory Board in 1998, to provide information and advice on trends in motor insurance costs and with policy recommendations for addressing those costs.