Vol. 550 No. 5
51 Mr. J. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the enormous hardship confronting young drivers seeking car insurance; and her proposals in this regard. [9129/02]
I am very much aware of the difficulties being experienced by young people in obtaining motor insurance. The pricing and underwriting of insurance is a matter for individual insurance companies. EU law prevents both me and our Department, from intervening in relation to the matter of premium levels, or in respect of the risks insurance companies 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, including 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 of America.
The work of the Motor Insurance Advisory Board, MIAB, has included an examination of the cost of motor insurance for young people. I received a briefing from the MIAB chairperson, backed up with a proposed final draft of the report, last week. I noted the progress made, and the chair's plans to bring the matter to a speedy conclusion. The board met on Thursday last and formally ratified the final text. The report has now been sent for printing.
I will be giving urgent consideration to the best way of advancing the MIAB's recommendations when I receive the printed report; and, in that connection, any contributions that I may receive from the Deputies will be very welcome. Meanwhile, I await the final report of the Interdepartmental Implementation Group, which was set up to progress the establishment of the Personal Injuries Assessment Board, PIAB, so that the board may be set up as quickly as possible.
