Brian O'Shea
Question:226 Mr. O’Shea asked the Minister for Transport his legislative proposals to regulate motor insurance premiums; and if he will make a statement on the matter. [33439/04]
View answerTuesday, 14 December 2004
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Written answers
Following setting up of the Irish Financial Services Regulatory Authority the Government decided that the following arrangements should apply in regard to responsibility for motor insurance issues. The authority has overall responsibility for the regulation and supervision of financial services including insurance companies. The Minister for Finance, as part of his IFSRA-related responsibilities, will deal with general policy issues relating to regulation of the insurance sector.
The Department of Enterprise, Trade and Employment, as part of its general responsibilities, retains an interest in the impact of insurance costs on the general competitiveness of industry. The Competition Authority also has a role in the competitiveness of the insurance market and the impact of mergers on it.
The Minister for Transport will deal with general policy in relation to the availability and cost of compulsory motor insurance. The actual transfer of the relevant functions to the Department of Transport will take place over the coming weeks as the necessary staff resources are put in place.
One of the first tasks for the Department of Transport, in respect of its additional insurance functions, will be to review the final report of the Motor Insurance Advisory Board paying particular attention to its many recommendations. The outcome of the review will inform my approach to building on the success of the Tánaiste and former Minister for Enterprise, Trade and Employment's insurance reform programme as evidenced by recent CSO data. This data shows that there was a reduction of 19.2% in car insurance premia between the months of April and October 2004.