I am very much aware of the serious difficulties being experienced by many businesses, including some builders, regarding the cost of insurance. Reductions in insurance premia cannot be made by ministerial order. EU law prevents Governments or any other body from intervening in the underwriting policy of any insurance undertaking.
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. Initial indications are that the reform programme is having its desired effect. The Irish Insurance Federation reported in September 2003 that there has been an average reduction of 11% in motor insurance charges in the year to date. More reductions are expected. Reductions are also expected in employers' liability and public liability insurance premia, which represent a significant burden for businesses.
The 35% reduction in the cost of insurance, referred to by the Deputy is, I believe, a reference to an estimate by the Irish insurance industry of a 31% reduction that could be anticipated if all of the recommendations in the Motor Insurance Advisory Board, MIAB, report were implemented. To-date 23 of these recommendations have been implemented and work is in progress on the implementation of the other recommendations. The Government has approved the drafting of the general scheme of the Bill to place the Personal Injuries Assessment Board, PIAB, on a statutory footing. It is hoped to enact the legislation by the end of the year. The PIAB will reduce the cost of delivering compensation and thereby lead to further reductions in insurance premia, including employers and public liability premia.
