Vol. 562 No. 1
211 Mr. Neville asked the Tánaiste and Minister for Enterprise, Trade and Employment her proposals to overcome the serious difficulties experienced by community councils in view of the inordinate increase in insurance. [5616/03]
I am very much aware of the serious difficulties being experienced by community councils due to the high cost of insurance.
On 25 October last, I announced my programme for fundamental insurance reform. The programme reflects the commitments given in An Agreed Programme for Government and comprises a comprehensive set of inter-related measures designed to improve the functioning of the Irish insurance market. The key measures include: establishment of a ministerial committee, chaired by myself, to oversee implementation of the reform programme, including the 67 recommendations in the Motor Insurance Advisory Board, MIAB, report; publication of the action plan to give effect to the MIAB recommendations within a target timeframe; establishment of the Personal Injuries Assessment Board, PIAB, on an interim basis, pending preparation of the necessary legislation to put the PIAB on a statutory footing; and publication of the report of the implementation group on the PIAB.
The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents me from intervening directly in the matter. However, I have made it clear that I consider there to be an onus on the insurance industry to ensure that the reforms to be taken will have the effect of significantly reducing the cost of premia to consumers.
My Department in conjunction with the Competition Authority finalised terms of reference last December for a study being undertaken into the competitiveness of the Irish insurance market. The terms of reference are available at www.entemp.ie and www.tca.ie.
