Dáil Éireann díospóireacht -
Tuesday, 6 Feb 1990

Vol. 395 No. 3

Written Answers. - Motor Insurance.

Colm M. Hilliard

Ceist:

117 Mr. Hilliard asked the Minister for Industry and Commerce the estimated amounts of motor insurance premia (a) paid in and (b) paid out for the years 1986 and 1989 inclusive; the reason all insurance companies do not have the same system of statement presentation, some quoting nett premia only and others quoting gross premia less noclaims bonuses; and the average acceptable increase in third party insurance and full comprehensive insurance for 1990.

Minister for Industry and Commerce (Mr. O'Malley)

The information sought by the Deputy is as follows:

Year	Moneys Paid In(IR£000)	Moneys Paid Out(IR£000)
1986	323,482	341,645
1987	344,639	377,527
1988	359,307	407,969

Figures for 1989 are not available at present.

Figures based on net underwriting results.

The Deputy will appreciate that I have no function in the day-to-day operations of insurance companies or in the exercise of business acumen on their behalf. The system of statement presentation adopted by insurers is a commercial matter to be decided on by each individual insurance company. Notwithstanding its desirability in the consumers' interest, some insurers do not indicate the level of no-claims bonus on their renewal statements. However, I understand that all insurers will issue details of no claims bonus on request.

As the Deputy no doubt will be aware, since price control was abandoned in January 1986, motor insurers are required only to notify my Department of proposed alterations in their rates. Such proposals do not require sanctioning but rather I must respect the right of individual insurers to adjust their rates in the light of their individual underwriting experience. Therefore, the question of adverage acceptable level of increases does not arise. The Deputy will appreciate that my primary, and indeed statutory responsibility as the insurance supervisory authority, is to ensure that insurance companies maintain the appropriate statutory reserves and solvency requirements.