Vol. 550 No. 1
56 Mr. Gregory asked the Tánaiste and Minister for Enterprise, Trade and Employment if the rise in insurance costs in the north city area of Dublin will be investigated (details supplied); and if she will make a statement on the matter. [7263/02]
We are 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 us 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 11 September 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.
Increases in insurance costs may be a contributory factor in the trading difficulties being experienced by some businesses at present but there may be other factors specific to particular cases. I encourage consumers and insurers to consider ways of reducing the worst effects of the current circumstances, for example by better management of risks, examination of excess covers and whether the full extent of the covers included in policies is actually required.
