Vol. 521 No. 1
116 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if any investigations or evaluation has been undertaken to identify the causes for the disparity between insurance costs here and those prevailing in other jurisdictions; and if she will make a statement on the matter. [16743/00]
In recent years there have been two investigations undertaken in relation to insurance cost differences between Ireland and other jurisdictions.
In 1996, Deloitte & Touche was commissioned to undertake an identification of the underlying causes of motor insurance costs in Ireland. In the course of that study, the consultants undertook a comparative survey of liability insurance costs in selected EU countries, based on sample quotations for small and medium-sized companies. The survey showed that on average public liability and employers liability insurance premia costs were higher in Ireland.
In assessing the significance of the comparisons of liability premiums, Deloitte & Touche concluded that the higher levels of expenditure on social protection by other EU countries relative to Ireland meant that, because state health and social welfare expenditures in these other countries covered more of the costs of sickness and disability arising from workplace and other personal injuries, the level of liability insurance cover required by employers in the other EU countries was less than in Ireland. Moreover, the costs of delivery of compensation in Ireland, through the legal system, were higher than in other EU countries.
The special working group on a personal injuries tribunal examined personal injury compensation systems in EU and other countries for occupational injury and motor vehicle injury. I am now examining that group's final report.
117 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that insurance costs to business here are in line with those in Euroland with particular reference to public liability costs; and if she will make a statement on the matter. [16744/00]
Deloitte & Touche, management consultants, were commissioned in 1996 to undertake a study on the economic evaluation of insurance costs in Ireland. Comparisons with other jurisdictions were made in respect of motor and public liability insurance. The study found that premium rates in Ireland were higher than in other EU countries surveyed.
The Deloitte & Touche report found that, apart from differences in compensation systems, the two major factors driving up the cost of personal injury settlements in Ireland were medical inflation and the high transactions cost of claims, particularly legal costs, including the cost of expert witnesses. In response to these findings, a special working group was established under the aegis of our Department. I have just received the group's final report and I am currently examining its recommendations. The Deloitte & Touche report also identified improved health and safety measures in the workplace as a way of reducing costs.
I would regard the initiatives on the establishment of affinity schemes for small businesses and the development of a voluntary code of practice, in safe working and accident prevention as significant and positive measures being taken by Irish business, through a social partnership approach, to reduce the cost burden of accidents in the workplace.
118 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent, if any, to which Irish motor insurance costs have come into line with those prevailing in other EU member states; and if she will make a statement on the matter. [16745/00]
Concerns about the level of premia for motor insurance have caused our Department to examine the factors contributing to the relatively high level of those premia, especially as compared with premia in other EU member states. The main objective of the Motor Insurance Advisory Board, which I re-established in 1998, is to examine the contributory factors to the cost of insurance in Ireland and also to examine possible initiatives towards reducing premiums.
It must be stressed, however, that comparison of Irish motor insurance premia with those in other EU member states is not always feasible because of different systems for providing compensation. I am examining ways of making our system more efficient. In particular, I am currently considering the recommendations of the special working group on the establishment of a personal injuries tribunal.
