Vol. 543 No. 1
103 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason she is allowing the proposed car insurance premium increases; if she has examined the implications of this on the economy; her views on whether the system is fair; and if she will make a statement on the matter. [25773/01]
In accordance with EU law, we cannot intervene in the pricing or underwriting of insurance of any type. The events in New York on 11 September last will lead to greatly increased costs for reinsurers and direct insurers in both Europe and the United States. Unfortunately, this will result in higher premiums for both private and commercial consumers of insurance, including motor insurance premiums.
The cost of insurance in Ireland has been the subject of extensive research by our Department. It is clear that the high cost of insurance in Ireland is linked to the high cost of claims. This Government has decided to establish a personal injuries assessment board, with a view to reducing the costs of delivery of compensation in personal injury cases. I understand that such costs are now running at in excess of 40% of the cost of claims. An interdepartmental implementation group is considering how the PIAB may be established. It is expected to report at the end of the year.
