Vol. 570 No. 2
110 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken to date to reduce insurance costs; her plans for the future in this regard; and if she will make a statement on the matter. [18604/03]
125 Mr. Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to claims that some hotels have been forced out of business and others have had to put expansion plans on hold due to the growing cost of insurance; the steps she is taking to ensure affordable insurance for hoteliers and others; and if she will make a statement on the matter. [18452/03]
185 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken to date to bring about a reduction in insurance costs with particular reference to motor and public liability cover; and if she will make a statement on the matter. [18846/03]
I propose to take Questions Nos. 110, 125 and 185 together.
I am very much aware of the serious difficulties being experienced by hotels and other businesses due to the high cost of insurance. 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. Key initiatives in the reform programme include: implementation of the recommendations in the Motor Insurance Advisory Board action plan within a target timeframe – to date, 15 of the recommendations have been implemented and work is in progress on the implementation of the others; establishment of the Personal Injuries Assessment Board, PIAB – the Government has recently approved the drafting of the general scheme of the Bill to place the PIAB on a statutory footing. 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 and 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.
I chair a ministerial committee established to drive the co-ordinated implementation of the reform programme across the relevant Departments and other bodies concerned. Substantial progress is being made on a range of other measures that will radically overhaul the functioning of the insurance market and help tackle the high cost of insurance. These include measures to reduce the number of accidents and to reform the law on personal injury.
While EU law prohibits the imposition of price control on insurance I have made it clear that I consider there to be an onus on the insurance industry to ensure that the reforms being undertaken will have the effect of significantly reducing the cost of premia to consumers and businesses.
