Vol. 570 No. 2
116 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that many small to medium size enterprises are not taking out insurance due to the enormous costs involved; the number of companies that are not doing this; and her plans to reduce insurance costs for these businesses. [18600/03]
I am aware of reports that some companies have stopped paying insurance and they are now self-insuring. However, I do not have any data on the number of firms that are doing so. Public or employers liability insurance cover, while not compulsory, is advisable to safeguard the solvency of the enterprise in the event of claims for damages or personal injury. On 25 October last, I announced my programme for reform, which comprises a comprehensive set of inter-related measures designed to improve the functioning of the insurance market.
The key measures include: implementation of the recommendations in the Motor Insurance Advisory Board's 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 other recommendations; 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, and 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 in relation to personal injury.
I have made it clear that I consider there to be an onus on the insurance industry to ensure that the reforms being taken will have the effect of significantly reducing the cost of premia to consumers.
Question No. 117 answered with Question No. 72.
