Dáil Éireann Debate, Wednesday - 29 September 2004
215 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the recent report from the National Competitive Council that showed an 11 per cent increase in non-life insurance cover in spite of her insurance reform programme; and if she will make a statement on the matter. [22525/04]
View answerThe figure of 11.2% increase shown in the recent report of the National Competitiveness Council, NCC, in respect of non-life insurance premia in Ireland relates to the year 2003. The insurance reform programme was launched in October 2002. Spiralling motorcar insurance premia costs hit a peak with an index of 108.0 in March 2003, and since then the index has dropped to 92.8 in August of this year, according to the Central Statistics Office monthly indices — based mid-December 2001 — which is a decrease of 15.2 index points or 14.07%.
Data obtained by the MIAB in its quarterly surveys shows significant decreases in motor insurance premia over the past 12 months. For example, the data provided by MIAB for three specific companies between March 2003 and March 2004, indicates the following reductions: 10% to 15.6% in comprehensive insurance for a 30 year old male; 10% to 41% in comprehensive insurance for a 50 year old female; and, 10% to 44.6% for third party, fire and theft insurance for a 21 year old male.
Anecdotal evidence supplied by representative groups suggests that liability premia are also falling.
In addition, there has been an improvement in the functioning of the Irish insurance market. The Irish Insurance Federation, IIF, recently revealed that the 20 non-life insurance companies operating in the Irish market made a combined operating profit of €747 million in 2003. While insurers profitability has led to reductions in insurance premia it also enhances the attractiveness of the market to prospective new entrants.
A number of new entrants in the motor and liability areas are now authorised to operate on a freedom of services basis in Ireland and a number of companies have applied for authorisation to locate in Ireland.
