Vol. 561 No. 4
140 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment if it is Government policy to favour a more open market for insurance cover of haulage vehicles; and the action the Government can take to prevent such companies going out of business. [4524/03]
I am aware of the high cost of insurance in the State and am concerned about the difficulties this is causing generally, including for those involved in the haulage business. I am in favour of a more open market for insurance cover and I am committed to bringing about improvements in the functioning of the Irish insurance market to help bring this about.
My Department, in conjunction with the Competition Authority, finalised terms of reference last December for a study being undertaken into the competitiveness of the Irish insurance market. The terms of reference are available at www.entemp.ie and www.tca.ie. The study will identify and analyse barriers to entry and limitations on rivalry in the insurance marketplace. I expect the study to provide important pointers to the reasons there are not more foreign insurers willing to underwrite insurance in Ireland.
With regard to Government action to address the difficulties being faced by companies, on 25 October last I announced my programme for fundamental insurance reform. The programme reflects the commitments given in An Agreed Programme for Government and comprises a comprehensive set of inter-related measures designed to improve the functioning of the Irish insurance market. The key measures include: establishment of a ministerial committee, chaired by myself, to oversee implementation of the reform programme, including the 67 recommendations in the Motor Insurance Advisory Board, MIAB, report; publication of the action plan to give effect to the MIAB recommendations within a target time frame; establishment of the personal injuries assessment board, PIAB, on an interim basis, pending preparation of the necessary legislation to put the PIAB on a statutory footing; publication of the report of the implementation group on the PIAB.
The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents me from intervening directly in the matter. However, there is an onus on the insurance industry to ensure that the reforms to be taken will have the effect of significantly reducing the cost of premia to consumers.
