Vol. 193 No. 2
asked the Minister for Industry and Commerce whether, further to replies of 6th December last and to his statement of 12th January on the subject of the increase in motor insurance premiums, he will consider setting up a public enquiry into the whole matter of motor insurance as suggested by the Royal Irish Automobile Club and other bodies.
27.
(South Tipperary) asked the Minister for Industry and Commerce if he will consider holding a public investigation into the recent increases in insurance charges.
I propose with the permission of the Ceann Comhairle, to take Questions Nos. 26 and 27 together.
The position in relation to motor insurance premium rates is set out in the statement issued by me on 12th January, 1962. As indicated in the statement, I intend to keep the position under review and to intervene if at any time it becomes evident that income from motor insurance premiums is significantly in excess of outgoings. I do not consider it necessary to set up a public enquiry at this stage.
Is the Minister aware that insurance premiums here on a particular type of car are substantially higher than in the Six Counties? Will he say on what grounds therefore the companies operating down here can justify such higher premiums in the Twenty Six Counties than are demanded in the Six Counties? An example of what I am saying is to be found in the fact that a car which costs £10 5s. to insure in the Six Counties costs £18 15s. 5d. here. Does the Minister not consider that if he compels the public as a matter of national policy to insure against motor car accidents, there is an obligation on him especially to ensure that the insurance is effected at the lowest possible price?
The example given by the Deputy relates only to one type which shows a marked difference in the premium in the Six Counties compared with here. Generally speaking, the position is that insurance companies relate their premiums to the incidence of claims which apparently, according to published reports, have exceeded insurance premiums over the past number of years.
How much of their administration is charged against insurance administration and how much is quite unnecessary?
28.
asked the Minister for Industry and Commerce whether he has available to him figures to show how much is spent by the thirty-seven insurance companies of the Accident Offices Association operating in Ireland on the administration and collecting of motor insurance premiums and how much is paid out by these companies in claims; if so, whether he will state what these figures are for each company concerned; and, if the figures are not available to him, if he will state the basis on which he decided to allow a further 20 per cent. increase in motor insurance premiums.
Detailed information is regard to the individual companies up to and including the year 1959 is obtainable from the Annual Reports on Assurance Companies published by my Department and presented to the Dáil. It is not the practice to release particulars of the annual accounts of individual insurance companies until these accounts have been presented to both Houses of the Oireachtas and I am not, therefore, in a position to give such particulars relating to the year 1960. I may say, however, that for the tariff offices the grand total of claims, expenses, commission and necessary increase in reserve for unexpired risks was £3,824,848 and the total premium income £3,561,429.
Could the Minister say what administration is a percentage of the premium income?
Thirty-seven per cent., as for as I can make out. There is commission on that, of course.
And a whole lot of other things, too.
That is administration and commission.
The Department of Social Welfare is administered for half that as a percentage.
The Department of Social Welfare do not get involved in legal actions.
It has not such a retinue around it.
29.
asked the Minister for Industry and Commerce whether in view of the fact that motor insurance is legally compulsory and that the insurance companies in Ireland operate a ring in this business and exclude all competition, he will consider taking the business of compulsory motor insurance into the hands of the State.
It is not proposed to take action on the lines suggested in the question.
As regards competition in premium rates, the Deputy is, no doubt, aware that licences to transact motor insurance business in Ireland are held by non-tariff offices and by Lloyds Syndicates, as well as by companies which are members of the Accident Offices Association.
30.
andMr. McQuillan asked the Minister for Industry and Commerce whether in connection with his decision to allow increased motor insurance premiums he satisfied himself that the insurance companies could not, by accepting reduced profit margins on the highly remunerative non-motor side of their business, provide funds needed to render the recent increases in the motor insurance section unnecessary.
The Deputies are not correct in their assumption that big profits are being made by the non-life insurance companies on business other than motor insurance. In fact in the year 1959 the non-life classes of business (other than motor) showed an underwriting loss.
In any event I could not subscribe to the view that motorists' insurance should be subsidised by the non-motoring members of the community in the way suggested by the Deputies.
Are we to understand from all these replies that we have operating here a large number of benevolent insurance companies who are doing nothing but losing money?
And advertising to lose it.
We have foreign companies in here losing money? Is the Minister really serious? Perhaps he has swallowed it himself, but surely he does not expect the public to swallow it?
These figures are disclosed in official documents which I, in my capacity as Minister, stand over and which the Government, in their capacity as the Executive, stand over. If the Deputy wishes to challenge them, he can do so.
Has the Minister any idea in what branches the insurance companies make any profit?
Some years, they make a profit and some years, they do not?
I think we should pin a medal on all these insurance men.
I am not defending the insurance companies. I am stating the facts available to any Deputy.
Surely it is not unreasonable to ask the Minister to have a public inquiry into it?
The figures show they have been losing money.
Their figures.
31.
asked the Minister for Industry and Commerce whether he will take steps to end the practice whereby insurance companies pay commission to agents for the collection of legally compulsory motor insurance premiums.
The matter referred to by the Deputy is a long standing feature of the detailed administration of their business by insurance companies in which I do not think it is desirable for me to intervene.
