I am very much aware of and concerned by the difficulties being experienced by some enterprises due to difficulties in obtaining insurance cover in the State. 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: the establishment of a ministerial committee, chaired by me, 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 timeframe; the 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; the 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, 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 as outlined in my reform programme will have the effect of improving the insurance market.
My Department, in conjunction with the Competition Authority, have agreed the terms of reference 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.
