Decisions on the underwriting of insurance risks and the setting of premiums are matters for judgment by individual private insurance companies and EU law prevents my Department from intervening directly in the matter. For example, 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.
My Department is pursuing initiatives to address the high cost of insurance, including motor insurance. The Motor Insurance Advisory Board has been charged with advising us on motor insurance costs and, in particular, with examining the relationship between the incidence of claims and the premiums charged for various classes of policy holder 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 over the month ahead. In light of its recommendations, the Government and I will consider what further action is appropriate and necessary.