Vol. 537 No. 5
135 Mr. Killeen asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress which has been made towards ensuring greater competition in the motor insurance business; if she will provide for transparency in the calculation of insurance rates for young drivers; and if she will make a statement on the matter. [16780/01]
EU legislation opened EU markets, including the Irish market, to competition from insurance providers based throughout the EU, in Ireland 1994. Currently, there are 27 insurers authorised to underwrite motor insurance in Ireland. Fifteen companies have their headquarters in Ireland, 11 are based in other EU member states and one is a non-EU insurer. In addition, I have removed the "cap" on brokers' commission in an effort to encourage further competition in the Irish market.
As a result of differing assessments of claims histories by insurers, strategies towards niche markets, specialisation and segmentation of the market, motor insurers quote different premiums for similar risks and this is characteristic of a competitive market. It is desirable that there should be greater transparency in the underwriting and pricing of motor insurance. However, it should be remembered that these are issues upon which insurance companies make decisions and EU law prohibits us from intervening in the pricing and underwriting of insurance in this country.
The issue of the high cost of insurance for young drivers, including the relationship between claims and premiums, is being examined by the Motor Insurance Advisory Board. The board's final report is expected by the end of this year and its recommendations are awaited with great interest. In the light of those recommendations, I will consider what further action is appropriate towards the goal of the reduction of the cost of motor insurance.
