Dáil Éireann debate -
Tuesday, 25 Nov 2003

Vol. 575 No. 3

Written Answers. - Insurance Industry.

Charlie O'Connor

Question:

128 Mr. O'Connor asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the serious concerns being expressed regarding the cost of insurance for young male drivers; the action being taken in this regard; and if she will make a statement on the matter. [28195/03]

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

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 I announced on 25 October last comprises a comprehensive set of inter-related 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, 23 of which have been fully implemented to date, three partially implemented and work is in progress on the implementation of the other recommendations; and establishment of the Personal Injuries Assessment Board. The Personal Injuries Assessment Board Bill 2003 was published on 18 November 2003 and is currently before the Houses of the Oireachtas. The Bill, when enacted, will provide for the establishment of the Personal Injuries Assessment Board on a statutory footing.

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 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, 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 to be 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.

Question No. 129 answered with Question No. 127.