Dáil Éireann debate -
Tuesday, 30 Jan 2001

Vol. 529 No. 1

Written Answers. - Motor Insurance.

Frances Fitzgerald

Question:

167 Ms Fitzgerald asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding age discrimination by companies in relation to car insurance (details supplied); and the action she will take in this regard. [1880/01]

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

Motor insurance underwriting criteria are normally based on underwriting experience, including trends in the level, frequency and cost of claims for particular risks and classes of risk and are a matter of judgment by individual private insurance companies. Any changes in circumstances affecting the risk insured would have to be assessed by the insurer from an underwriting standpoint and the premiums charged would reflect any material increase in the risk. Increasing use of technology is being made by insurers in segmenting risk categories into more discrete groupings.

The high level of compensation claims for personal injuries sustained in road accidents and the high cost of such claims prevents motor insurers from minimising their insurance premiums. Because personal injury claims constitute a greater proportion of claims made by Irish policyholders, the cost of claims to Irish motor insurers is proportionately higher than in other EU member states. Another contributor to the costs incurred by motor insurers is the level of uninsured driving and the claims which arise following accidents caused by uninsured drivers. These claims are paid by motor insurers.

EU law prevents us from intervening directly with the insurance companies in the matter of premium levels or in respect of what risks they are prepared to underwrite. Discussions have taken place between my Department and the Irish Insurance Federation, IIF, on the issue of motor insurance for elderly drivers on many occasions and it accepts that motor underwriting criteria are sometimes not flexible enough to take account of individual circumstances. Each underwriting risk, however, must be considered in the overall context of providing protection to all insured drivers.

The motor insurance advisory board will advise me on the contributory factors to the high level of premium charges for motor insurance and the methods for providing motor insurance between different risk categories of drivers, with regard to accidents and claims.