Vol. 534 No. 3
85 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she proposes to take on the recent report that young drivers are being overcharged for insurance; and if she will institute a regular published assessment of insurance loading practices so that there can be transparency regarding the cost basis of different insurance companies' practices. [10535/01]
The recent release of the interim report of the Motor Insurance Advisory Board under the Freedom of Information Act, 1997, has provoked much debate on the statistical basis for the insurance industry's argument that young drivers are a very high risk category. However, it is important to note that at the time that this report was prepared, the MIAB recognised that the raw data available to it was incomplete. The board emphasised at that time, and since, that the indicators in the report could not be regarded as conclusions. The insurance industry has recently agreed to provide verified data to the board's statistician who will carry out a detailed analysis of it. The board's final report is expected by the end of this year and its recommendations are awaited with great interest. In the light of those recommendations, I will consider what further action is appropriate to reduce the cost of motor insurance.
At this stage, it would appear desirable that there be greater transparency in the underwriting and pricing of motor insurance. However, it should be remembered that these are issues upon which insurance companies make decisions and EU law limits the extent to which we can intervene in the pricing and underwriting of insurance in this country.
