Vol. 549 No. 3
97 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the serious problems being experienced by businesses due to the rise in insurance premiums; if her attention has further been drawn to a publication (details supplied); and if she will make a statement on the matter. [6417/02]
100 Mr. Ring asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans regarding the costs of public liability insurance for small companies; and if there is a regulation which could be introduced to deal with this matter. [6549/02]
106 Mr. Healy asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she intends to take to control insurance costs. [6737/02]
108 Mr. McCormack asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the increase in insurance for small businesses in the current year; if she will make a statement on the potential job losses as a result of businesses being unable to continue due to the heavy burden of insurance; the steps she will take to alleviate this problem for small businesses. [6771/02]
I propose to take Questions Nos. 97, 100, 106 and 108 together.
I am very much aware of the substantial increases in insurance premiums that many firms are facing and of the problems this is creating for them. The pricing and underwriting of insurance is, however, a matter for individual insurance companies. EU law prevents me and the Department from intervening in relation to the matter of premium levels or in respect of what risks they are prepared to underwrite. Insurers make decisions on provision of cover based on their assessment of that particular risk.
The insurance industry has pointed to a number of factors, both domestic and international, to explain these increases. These include the high cost of settling claims, the general reduction in investment returns, recent court decisions regarding the calculation of compensation losses in personal injury cases and the affects of the September 11 attacks in the United States. The situation has not been helped by the failure of the UK authorised insurer, Independent Insurance Company Limited, which had a significant presence in the Irish market. An interdepartmental implementation group is progressing the establishment of the Personal Injuries Assessment Board, PIAB. I am confident that the establishment of the PIAB will achieve a reduction in the delivery costs of personal injury compensation, thus permitting a reduction in insurance costs to consumers.
A workplace safety group has been established with a view to improving health and safety standards in the workplace. The objectives are to reduce workplace accidents, to encourage injured workers to return at the earliest possible date to the workplace and, to improve claims handling procedures, thus reducing insurance costs. The group is developing proposals at present designed to bring the initiative to small and medium sized firms.
