I propose to take Questions Nos. 12 and 62 together.
My Department no longer regulates insurance undertakings. This responsibility has passed to the Irish Financial Services Regulatory Authority, IFSRA, under the aegis of my colleague, the Minister for Finance, who holds overall responsibility for policy and legislation in relation to the provision of financial services in Ireland. My colleague, the Minister for Transport, has taken over the lead role in relation to policy and legislation on the availability and cost of motor insurance and any related inter-departmental co-ordination. The primary ongoing insurance focus of my Department will be from the horizontal competitiveness perspective and competition in conjunction with the Competition Authority. My Department also retains responsibility for the Personnel Injuries Assessment Board.
I am aware of the conclusion in the final report of the Motor Insurance Advisory Board, MIAB, that there is scope for motor insurance premia to fall further, and while there have been significant reductions in the cost of motor insurance, as the following points illustrate, I am satisfied that there is indeed scope for further reductions.
Central Statistics Office, CSO, consumer price index statistics show that there was a reduction of 20% in motorcar insurance between April 2002, when the first MIAB report was published, and October 2004. Examples provided by MIAB for three specific companies between March 2003 and March 2004 indicates the following reductions: 10% to 16% in comprehensive insurance for a 30 year old male; 10% to 41% in comprehensive insurance for a 50 year old female; and 10% to 45% for third party, fire and theft insurance for a 21 year old male.
The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents governments from intervening directly in relation to premium levels. However, governments are free to take measures to improve the operation of the insurance market. Recent measures taken under the Government's insurance reform programme have led to a better functioning insurance market. This is reflected in the significant underwriting profits in the insurance industry as reported by IFSRA in its first insurance statistical review of October 2003, previously published by my Department.
The new operating conditions enhance the attractiveness of the market to prospective new entrants and while the premium reductions we have seen to date are welcome, I would expect further premium reductions from the new market conditions now in place. Competition from new entrants attracted by better market conditions will be an important element in ensuring continuing downward pressure on premia. The recent authorisation of five new entrants to operate in the Irish market will make a further important contribution in this regard. The report of the study undertaken jointly by my Department and the Competition Authority will be published early in 2005. This will provide further insights and make recommendations to further improve the competitive aspect of the insurance market.