I propose to take Questions Nos. 97, 114, 120, 184 and 185 together.
We are fully aware that insurance costs have increased dramatically during the past year. The insurance industry has pointed to a number of factors, both domestic and international, to explain these increases. These include High Court decisions which required insurers to strengthen reserves for claims arising in past years and the global impact of 11 September on international insurers and re-insurers. Under EU law we cannot intervene in matters of pricing or underwriting of insurance.
Research has shown that insurance premiums are high in Ireland because compensation awards are also high. Compensation for loss of income and medical expenses arising from personal injury is paid through the private insurance system rather than through the social welfare and health systems as in other European countries. The costs of the delivery of insurance compensation runs at approximately 40% of the total cost of claims.
The objective of the proposed Personal Injuries Assessment Board is to reduce these latter costs so that insurance costs may also be reduced. The implementation group is expected to report at the end of the year as to how the PIAB may be put into operation.