Dáil Éireann debate -
Thursday, 21 Mar 2002

Vol. 550 No. 5

Written Answers. - Insurance Costs.

Seán Barrett

Question:

27 Mr. Barrett asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she is taking to ensure that there are sufficient insurance underwriters operating here to meet the insurance requirements of individuals and businesses, to ensure an ongoing competitive environment to keep premiums at the lowest possible level and also to guarantee a continuing market for the various types of risk. [6351/02]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy):

Decisions on the underwriting of insurance risks and the setting of premiums are matters for judgment by individual private insurance companies and EU law prevents either me or my Department from intervening, directly in the matter. Insurers make decisions on provision of cover, based on their assessment of that particular risk.

Since the transposition into Irish law of the EU Third Framework Insurance Directives in 1994, insurance companies authorised in any one member state may provide insurance cover throughout the EU on the basis of their home country authorisation. This has opened up the Irish market to competition from insurance providers in other EU countries. I have encouraged such competition. In addition, I believe that the removal of the cap on brokers' commission will encourage further competition in the Irish market. The decision of the Government to establish a Personal Injuries Assessment Board seeks to address the issue of the high cost of settling claims, by achieving a reduction in the delivery cost of personal injury compensation. This should make the marketplace more attractive and encourage more entrants.