Written Answers - Insurance Industry.
Bernard J. Durkan
Question:
121
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the extent of her actions to counter increases in insurance premiums here; the measures to date and their effect; her proposals for the future; and if she will make a statement on the matter.
[8148/03]
Willie Penrose
Question:
143
Mr. Penrose
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the progress made to date with regard to the implementation of her action plan for the insurance industry; the timetable for the implementation of the different elements of the plan; if she intends to take steps, in the meantime, to deal with the escalating cost of insurance; and if she will make a statement on the matter.
[8130/03]
Finian McGrath
Question:
146
Mr. F. McGrath
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
when she will introduce plans to bring in radical changes to the insurance industry in order to reduce premiums for young people, enterprises and schools.
[8083/03]
Bernard J. Durkan
Question:
173
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the action she has taken to date to bring about a reduction in public liability insurance premiums; and if she will make a statement on the matter.
[8355/03]
Bernard J. Durkan
Question:
174
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the extent to which she expects insurance costs to reduce in the near future; and if she will make a statement on the matter.
[8364/03]
I propose to take Questions Nos. 121, 143, 146, 173 and 174 together.
I am very much aware of the high cost of insurance in the State and I am concerned about the difficulties this is causing for many people, including young drivers, enterprises and schools. On 25 October last, I announced my programme for fundamental insurance reform. The pro gramme 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 the 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 – this committee meets on a monthly basis; publication of the action plan to give effect to the MIAB recommendations within a target timeframe – this report was published last October. A number of the recommendations have already been implemented, some by the insurance industry and some by the relevant Government Departments. Progress on the other recommendations is continuing; publication of the report of the implementation group on the PIAB – this report was published last October; and establishment of the personal injuries assessment board, PIAB, on an interim basis – the chairperson and ordinary members of the interim PIAB board were appointed on 27 November 2002. Agreement on the initial drafting of legislation to put PIAB on a statutory basis has been reached and the general scheme of the Bill for the establishment of the PIAB on a statutory basis, is intended to be published around the summer of 2003, after Government has given approval for drafting.
I am committed to bringing about improvements in the functioning of the Irish insurance market. My Department, in conjunction with the Competition Authority, is undertaking a joint study into insurance. The study will identify and analyse barriers to entry and limitations on rivalry in the insurance marketplace. It is envisaged that the bulk of the work will be completed this year and that a report will be produced in the early part of 2004.
While EU law precludes the imposition of price controls on insurance, I have made it clear that I expect aquid pro quo from the insurance industry, in the form of reduced premiums, in response to the reform programme. The insurance industry's response will be carefully monitored. The acid test will be the impact felt in the consumer's pocket. In this regard, it is heartening to note the recent reported comments from a number of the major motor insurers here, that further increases in premiums may not be necessary at present and, in one case, that they have already reduced premiums since the beginning of this year. As implementation of the measures contained in the reform programme continues, I expect this trend to continue.
