Dáil Éireann debate -
Tuesday, 1 Jul 2003

Vol. 570 No. 2

Written Answers. - Insurance Industry.

Michael D. Higgins

Question:

99 Mr. M. Higgins 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. [18451/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

The insurance reform programme that I announced on 25 October last comprises a comprehensive set of inter-related measures designed to improve the functioning of the Irish insurance market. I chair a ministerial committee established to drive the co-ordinated implementation of the reform programme across the relevant Departments. Substantial progress is being made on a range of measures that will radically overhaul the functioning of the insurance market.

Progress has been made on the implementation of the majority of the Motor Insurance Advisory Board recommendations and to date 15 have been implemented. I have already brought in regulations requiring insurers to give policyholders 15 working days notice for renewal of motor insurance policies and also requiring no claims bonus information to be provided with renewal notices. These are designed to facilitate policyholders make price comparisons.

The Government has recently approved the drafting of the general scheme of the Bill to place the Personal Injuries Assessment Board on a statutory basis. It is hoped to enact the legislation by the end of the year.

My Department and the Competition Authority are undertaking a joint study into the insurance market. 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.

Penalty points for speeding offences and not having motor insurance have been introduced by the Minister for Transport and it is intended to extend them to other driving offences such as not wearing seat belts. Initial indications are that the introduction of penalty points is having a very positive effect and the Minister is seeking reduced insurance premiums for non-offending motorists in return for access to the penalty point data.

The Minister for Justice, Equality and Law Reform is preparing a Bill to reform the law on personal injuries, which will include measures to deal with spurious and/or exaggerated claims and other issues.

Question No. 100 answered with Question No. 82.