Dáil Éireann díospóireacht -
Wednesday, 13 Jun 2001

Vol. 538 No. 1

Written Answers. - Insurance Industry.

Bernard J. Durkan

Ceist:

121 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will take steps to improve the competitiveness of the insurance industry here with particular reference to motor and public liability cover; and if she will make a statement on the matter. [17462/01]

Bernard J. Durkan

Ceist:

122 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she proposes to take initiatives to introduce greater competition to the motor insurance industry; and if she will make a statement on the matter. [17463/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

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.

Bernard J. Durkan

Ceist:

123 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has met with representatives of the PIBA arising from their concerns regarding regulations governing the industry; if she will take action to address the situation; and if she will make a statement on the matter. [17464/01]

Bernard J. Durkan

Ceist:

124 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the concerns expressed by PIBA regarding the regulations appertaining to the insurance industry, with particular reference to the disadvantaged position in which independent brokers find themselves as against banking or other direct sales institutions; if she proposes changes in this area; and if she will make a statement on the matter. [17465/01]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

I propose to take Questions Nos. 123 and 124 together.

The insurance Bill was discussed at length during last year, with the various interest groups involved, including the Professional Insurance Brokers Association. It was signed into law on December 20, last, becoming the Insurance Act, 2000. A commencement order was subsequently made bringing into effect various sections of the Act. The Part which amended the Investment Intermediaries Act, 1995, to allow for the transfer of regulatory responsibility for insurance intermediaries to the Central Bank, came into effect on the first of April last.

I understand that the Central Bank issued consultation documents and engaged in intensive consultations with the insurance brokers associations in relation to the bank's taking up of regulatory responsibility for insurance intermediaries.

While the regulation of insurance intermediaries is now strictly a matter for the Central Bank and the Department of Finance, I have recently chaired a meeting, attended by representatives of the insurance brokers associations and other interested parties, held in the context of further consultations being undertaken by the Central Bank. In my opinion, the meeting was a valuable positive contribution to the process of consultation being undertaken by the Central Bank. I understand that consultations are continuing in a satisfactory manner for all of the partners involved.