Vol. 571 No. 3
86 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment her proposals to bring about substantial reductions in the cost of public liability insurance; and if she will make a statement on the matter. [21769/03]
The insurance reform programme that I announced on 25 October 2002 comprises a comprehensive set of inter-related measures designed to improve the functioning of the insurance market. The key measures include; implementation of the recommendations in the Motor Insurance Advisory Board action plan within a target timeframe – to date 23 of the recommendations have been implemented and work is in progress on the implementation of the other recommendations; establishment of the Personal Injuries Assessment Board – the Government has approved the drafting of the general scheme of the Bill to place the PIAB on a statutory footing and it is hoped to enact the legislation by year-end; and 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 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.
While EU law prohibits the imposition of price control on insurance I have made it clear that I consider there to be an onus on the insurance industry to ensure that the reforms to be undertaken will have the effect of significantly reducing the cost of premia to consumers and businesses. In this regard it is heartening to report that a number of insurers have announced reductions in motor insurance premia. As implementation of the reform programme continues, in particular the reform of the law on personal injuries and the establishment of the Personal Injuries Assessment Board, I expect reductions to occur in all forms of insurance including public liability.
