I would like to remind the House that my primary and indeed statutory duty as the insurance supervisory authority is to ensure that insurance companies maintain their statutory reserves and solvency requirements. I must, therefore, respect the right of insurance firms to make their own underwriting decisions, including the acceptance or rejection of any risk, in the light of their own underwriting experience. No legal obligation can be placed on an insurer to quote in respect of any risk or to quote at any particular premium. I am not responsible for the day-to-day running of insurance companies or the exercise of business acumen on their behalf.
The cost of insurance in this country, as indeed in any market, is substantially dependent on the frequency and level of claims.
It is unfortunately the case that the particular problems of high crime areas give rise to high claims and, therefore, higher premium costs. The costs of claims can only be met by insurance companies if an adequate premium is forthcoming to cover the risk involved.
In relation to property and related insurance, the Irish Insurance Federation is on record to the effect that: insurers do not regard any area as a "black spot" for the purposes of providing cover; each case is assessed on its own merits, but very few risks are genuinely uninsurable; certain areas social problems which give rise to high claims and premium costs are neither within the control of insurers nor unique to any city in Ireland and claims and premiums are directly and closely linked. However, the federation's property standing committee is always prepared to re-examine cases of failure to obtain property insurance, on the strict understanding that it cannot guarantee to provide cover.
Before any case can be referred to the federation it is necessary that at least half the market (approximately 12 companies including Lloyds), be approached without success. Evidence of these approaches (e.g. a letter from a broker together with a brief synopsis of the risk should be forwarded to the insurance section of my Department who will refer the matter to the federation. I must again emphasise that, while this arrangement is reasonably successful, no guarantee can be given that cover will be forthcoming in each individual case.
