Vol. 547 No. 1
122 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the rising price of car insurance for all drivers; the effects this has on the number of people driving without insurance; and if she will make a statement on the matter. [2599/02]
123 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the linking by the insurance industry of the cost of motor insurance with the numbers of serious accidents which are occurring; and if she will make a statement on the matter. [2600/02]
125 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment the efforts which can be made to address the cost of motor insurance; and if she will make a statement on the matter. [2602/02]
I propose to take Questions Nos. 122, 123 and 125 together.
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 and 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 insurance industry has pointed to a number of factors to explain increases in premiums. These include the high cost of settling claims, High Court decisions that require insurers to strengthen reserves for claims arising in past years and increases in reinsurance prices they must pay.
While increases in insurance prices may make it more difficult for people to afford insurance, I do not accept that this should lead to an increase in the number of motorists driving without insurance. The Motor Insurance Advisory Board 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 having carried out a detailed analysis of the report.
It is intended that the establishment of the Personal Injuries Assessment Board will achieve a reduction in the delivery costs of personal injury compensation, thus permitting a reduction in insurance costs to consumers.
124 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment if car insurance prices here are comparable to those in the United Kingdom; if the statistics for accidents are comparable between the two countries; and if she will make a statement on the matter. [2601/02]
In accordance with EU law, we cannot require motor insurance companies to notify us of premium rates. Accordingly, our Department does not have authoritative statistics on premiums. Neither does it have such statistics that would allow comparison of accidents in Ireland and the UK.
