Vol. 561 No. 4
184 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether it is acceptable for premia on car insurance to rise over three years from ?400 in 2001, to ?750 in 2002, and to ?976.40 in 2003; and the policy adopted and action to be taken to end the escalating rates of insurance premia here. [4538/03]
The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents me from intervening directly in the matter. While I do not have specific information on insurance premium increases, I am very much aware of the high cost of insurance in the State and I am concerned about the difficulties this is causing generally, including for motorists. The insurance industry has pointed to a number of factors, both domestic and international, to explain recent high increases in premiums, including low investment returns, the 11 September attacks in the US, high levels of compensation and the cost of settling claims.
On 25 October 2002, 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 the 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 report; publication of the action plan to give effect to the MIAB recommendations within a target timeframe; establishment of the Personal Injuries Assessment Board on an interim basis, pending preparation of the necessary legislation to put the PIAB on a statutory footing; and publication of the report of the Implementation Group on the PIAB.
I have made it clear that I consider there to be an onus on the insurance industry to ensure that the reforms to be taken will have the effect of significantly reducing the cost of premiums to consumers. I am committed to bringing about improvements in the functioning of the Irish insurance market. 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.
