Vol. 572 No. 2
85 Mr. O'Connor asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding her continued efforts to deal with the important issue of car insurance for young people; the progress in this regard; and if she will make a statement on the matter. [22666/03]
I am very concerned about the difficulties that are being caused by high insurance premiums, especially in relation to young drivers.
The insurance reform programme that I announced on the 25 October last comprises a comprehensive set of interrelated measures designed to improve the functioning of the Irish insurance market. The key measures include: implementation of the recommendations in the Motor Insurance Advisory Board action plan within a target timeframe. To date, 23 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: the Government has 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 year-end.
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.
I chair a ministerial committee established to drive the coordinated implementation of the reform programme across the relevant Government 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, to tackle fraudulent and exaggerated claims and streamline the law in relation to personal injury claims.
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 taken will have the effect of significantly reducing the cost of premia to consumers and businesses. In this regard it is heartening to report that a number of insurers have announced reductions in motor insurance premia. As implementation of the reform programme continues, I expect further reductions to occur.
