asked the Minister for Industry and Commerce the plans he has to ensure that insurance premia are reduced without delay.
Written Answers. - Insurance Costs.
84.
First, I should explain that my primary responsibility as the insurance supervisory authority is to ensure that companies meet their statutory reserves and solvency requirements. In this regard I must respect the right of insurers to charge economic premiums and I cannot compel insurers to provide insurance at a particular price. The cost of insurance is related directly to the number of accidents, the cost of claims and the consequent underwriting losses sustained by insurers.
I am acutely aware of the adverse impact which the high cost of insurance can have on industry and on the cost of living generally. As I see it, the important task is to reduce or at the very least stabilise insurance costs. I will be examining closely measures which can be taken to improve the insurance environment and thereby ameliorate costs. I have in mind, particularly, improvements in safety in the workplace and on the roads and reform of the legal process. In the area of safety at work, for example, employers can benefit from the expert advice and guidance available from insurance companies over years of experience. Despite recent encouraging trends, the number of accidents on the roads is still high and greater road safety would have a very beneficial effect on premium levels. I hope that the momentum created by the work of the Barrington Commission on Health and Safety at Work and the National Road Safety Association can be continued so that the numbers of accidents will decline, the number of claims will fall and the cost of claims will stabilise. Ultimately, though, the onus is on each and every one of us to improve safety standards and safety awareness generally.
In the area of reform of the legal process, I would like to see certain steps taken to help control this element of costs. These include:
abolition of jury trials,
better pre-trial procedures to deal with subsidiary issues in cases going to trial,
the compilation of a Book of Quantum of Damages,
increasing the jurisdiction of the District and Circuit Courts,
abolition of the three counsel rule.
Early progress must be made on all of these issues if the problem of high insurance costs is to be tackled in an effective manner. I will continue to pay close attention to this whole area to ensure that improvements are brought about wherever possible.