I propose to take Questions Nos. 121 and 122 together.
Since the transposition into Irish law of the EU Third Framework Insurance Directives in 1994, insurance companies authorised in any member state may provide insurance cover throughout the entire EU on the basis of their home country authorisation. This has opened up the Irish market to competition from insurance providers in other EU countries. In addition, I removed the cap on brokers' commission to encourage further competition in the Irish market.
The decision of this Government to establish a personal injuries assessment board, by next year, seeks to address the issue of the high cost of settling claims by achieving a reduction in the delivery cost of personal injury compensation for work related injuries, in its initial phase, and later in road injury cases. This may also help to make the Irish market more attractive to insurers based in other EU member states, thereby increasing competition in the market.
The Motor Insurance Advisory Board will be reporting to me later this year and following that, I will take whatever further action is appropriate towards the goals of reducing the cost of motor insurance and increasing competitiveness in the marketplace.