Dáil Éireann díospóireacht -
Thursday, 23 Oct 2003

Vol. 573 No. 2

Written Answers. - Insurance Industry.

Joe Costello

Ceist:

24 Mr. Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the publication of recent figures showing that 12 insurance companies operating in the Irish motor market made ?183 million in profits in 2002; the steps she intends to take to ensure that this huge increase in profits results in reduced premiums for motorists; and if she will make a statement on the matter. [24471/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

The pricing and underwriting of insurance is a matter for each individual insurance company and EU law prevents Governments or any other body from intervening in the underwriting policy of any insurance undertaking. Reductions in insurance premia cannot be made by ministerial order.

The insurance reform programme I announced on 25 October last comprises a comprehensive set of interrelated measures designed to improve the functioning of the Irish insurance market. Initial indications are that the reform programme is having its desired effect. The Irish Insurance Federation reported in September 2003 that there has been an average reduction of 11% in motor insurance charges in the year to date and more reductions are expected. Reductions are also expected in employers' liability and public liability insurance premia, which represent a significant burden for businesses.

The Government has approved the drafting of the general scheme of the Bill to place the Personal Injuries Assessment Board, PIAB, on a statutory footing. It is hoped to enact the legislation by the end of the year. The PIAB will reduce the cost of delivering compensation and thereby lead to further reductions in insurance premia, including employers' and public liability premia. I am confident that the measures the Government is putting in place to reform the Irish insurance market will attract new players into the market and lead to further downward pressure on premia.