Jim O'Keeffe
Question:125 Mr. J. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the increase in insurance premiums; and the proposals she has to deal with this issue. [23062/01]
Written Answers. - Insurance Premia.
It is reasonable to question why insurance premiums should be increasing in an environment where, for example, the numbers of motorists are increasing at the same time that accident rates are declining. Equally, while the numbers at work have increased, the effort to improve workplace safety seems to be resulting in fewer accidents. This is not to be complacent. Clearly, we must continue to strive to reduce accidents.
However, it must be acknowledged that the environment for insurance costs has deteriorated in recent months. I understand that re-insurance costs were already escalating before the tragic events of 11 September in New York. In addition, recent High Court judgments will require insurers to strengthen reserves for past claims not yet settled as well as future claims.
In accordance with EU law, I am not in a position to intervene in the pricing or underwriting of insurance. Apart from continuing to encourage active competition on the Irish market, I am confident that the Personal Injuries Assessment Board, by reducing the delivery costs of personal injury compensation, will assist in moderating insurance costs.