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Dáil Éireann díospóireacht -
Tuesday, 5 Feb 2002

Vol. 547 No. 3

Written Answers. - Insurance Industry.

Brendan McGahon

Ceist:

117 Mr. McGahon asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the job losses directly attributable to the high cost of public liability and employer's liability insurance; and if she will make a statement on the matter. [3369/02]

We are aware of the difficulties being experienced by some businesses in obtaining public liability and employer's liability insurance cover at present.

The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents us from intervening in relation to the matter of premium levels or in respect of what risks they are prepared to underwrite. Insurers make decisions on the provision of cover based on their assessment of that particular risk.

The insurance industry has pointed to a number of factors, both domestic and international, to explain these increases. These include the high cost of settling claims in Ireland, the general reduction in investment returns, recent court decisions regarding the calculation of compensation losses in personal injury cases and the effects of the 11 September attacks in the United States of America.

The Government has decided to establish a personal injuries assessment board, PIAB, with a view to reducing the costs of the delivery of compensation in personal injuries cases. Work on the establishment of the PIAB is in progress. It is expected that the PIAB will, in the course of time, substantially reduce the number of personal injury claims being brought to court, thus reducing the legal and other costs involved in the delivery of personal injury compensation.

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