Vol. 534 No. 2
61 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will investigate the circumstantial evidence that a cartel exists within the insurance sector, particularly in relation to insurance on motorbikes and vehicles being driven by young drivers; and if she will make a statement on the matter. [10283/01]
The pricing and underwriting of insurance is a matter for individual companies and EU law prevents us from intervening in relation to either. Insurers normally make decisions about whether they are prepared to quote for a particular risk, and, if so, at what premium level based on their underwriting experience or assessment of that risk in the market.
We are aware that many insurers regard the risks associated with motorcyclists and young drivers as being difficult to quote. It was because of my concerns in relation to the difficulties experienced by young drivers that I established the Motor Insurance Advisory Board in 1998. This body is continuing its work and is expected to issue a final report by the end of this year.
In relation to the availability of insurance for motorcyclists, there is only one head office company which writes such insurance in Ireland and there is a broker offering an alternative on the market. The EU single market for insurance grants access to the Irish insurance market to all authorised insurance companies within the EU. This allows larger numbers of insurers to compete on the Irish market thereby giving Irish consumers a choice of quotations from the insurance companies competing on the Irish market.
Investigations of possible anti-competitive activity in the economy is a matter for the Competition Authority. Complainants may also take a case in the courts under the Competition Acts or make a complaint to the director of competition enforcement at the authority.
I understand that the Minister for the Environment and Local Government will reply to the second part of the question.
