Vol. 552 No. 1
76 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the escalating insurance costs which is of major concern practically to every sector of the community where insurance premia are spiralling at an alarming rate; the measures which have been implemented to adequately address the situation; and if she will make a statement on the matter. [11623/02]
The pricing and underwriting of insurance is a matter for individual insurance companies. EU law prevents me and our Department from intervening in relation to the matter of premium levels or in respect of the risks insurance companies are prepared to underwrite. Insurers make decisions on 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, including the high cost of settling claims, the general reduction in investment returns, recent court decisions regarding the calculation of compensation losses in personal injury cases and the affects of the September 11 attacks in the United States.
Representations being made to me suggest that many businesses seek insurance cover from sources outside Ireland. Availability from these sources has contracted, as capacity in the international market has been impaired following the events of September 11 last.
I am aware of the difficulties being experienced by businesses in getting cover, even at very high premiums. I recently met the Irish Insurance Federation and representatives of the main insurers here to discuss these difficulties. The issue of firms with good safety records, and insured with a particular undertaking for an extended length of time, getting insurance renewals without significant premium increases was raised at the meeting.
