Vol. 547 No. 1
97 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the initiatives she is taking regarding the continuing high premiums charged to young drivers who seek car insurance; and if she will make a statement on the matter. [1194/02]
Decisions on the underwriting of insurance risks and the setting of premiums, including those for young drivers, are matters of judgment by individual private insurance companies. EU law prevents us from intervening directly in the matter. Motor insurance premiums are normally based on underwriting experience, including trends in the level, frequency and cost of claims, for particular risks and classes of risk.
The Motor Insurance Advisory Board, MIAB, has been charged with advising me on motor insurance costs and, in particular, examining the relationship between the incidence of claims and the premiums charged for various classes of policyholder identified by age and sex. The issue of the high cost of insurance for young drivers is especially being examined by the board. I expect to receive the final report of the board within a matter of weeks. In the light of its recommendations, the Government will consider what further action is appropriate and necessary after having carried out a detailed analysis of the report.
It is intended that the establishment of the Personal Injuries Assessment Board, PIAB, will achieve a reduction in the delivery costs of personal injury compensation, thus permitting a reduction in insurance costs to consumers.
