Vol. 571 No. 1
239 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of small firms and businesses that have been forced to close due to the rising and exorbitant charges that are being made by insurance companies; and the immediate measures she proposes to introduce to alleviate these increases. [19611/03]
I am very much aware of the serious difficulties being experienced by small firms and other businesses due to the high cost of insurance. My Department does not have specific data concerning the number of small firms or businesses that have closed as a direct result of the increases in insurance premia. The insurance reform programme that I announced on 25 October last comprises a comprehensive set of inter-related measures designed to improve the functioning of the Irish insurance market. The key measures include the implementation of the recommendations in the Motor Insurance Advisory Board's action plan within a target time frame To date, 23 of the recommendations have been implemented and work is in progress on the implementation of those remaining. It is also planned to establish the Personal Injuries Assessment Board and in this regard the Government has approved the drafting of the general scheme of the Bill to place the PIAB on a statutory footing. It is hoped to enact the legislation before the end of the year.
My Department and the Competition Authority are undertaking a joint study into the insurance market. The study will identify and analyse barriers to entry and limitations on rivalry in the insurance marketplace. It is envisaged that the bulk of the work will be completed this year and that a report will be produced in the early part of 2004. I chair a ministerial committee established to drive the co-ordinated implementation of the reform programme across the relevant Government Departments and other bodies concerned. Substantial progress is being made on a range of other measures that will radically overhaul the functioning of the insurance market and help tackle the high cost of insurance. These include measures to reduce the number of accidents, to tackle fraudulent and exaggerated claims and streamline the law in relation to personal injury claims.
