Vol. 547 No. 3
49 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures she intends to introduce to ensure competition in the car insurance market; and if she will make a statement on the matter. [3124/02]
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 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 believe that the removal of the "cap" on brokers' commission will encourage further competition in the Irish market.
The decision of this Government to establish a Personal Injuries Assessment Board seeks to address the issue of the high cost of settling claims by achieving a reduction in the delivery cost of personal injury compensation. This should make the marketplace more attractive and encourage more entrants.
The Motor Insurance Advisory Board – MIAB – is in the process of completing its work. I expect to receive the final report during the coming month. We will examine the board's recommendations as a matter of urgency when received, with the intention of bringing proposals to Government and publishing the report.
In the final analysis, however, the pricing and underwriting of insurance is a matter for individual companies and EU law prevents us from intervening in respect of either.
