Dáil Éireann Debate, Thursday - 7 October 2004
43 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he has compared insurance costs here with those applicable within Ireland’s European trading partners, with particular reference to motor insurance and public liability; and if he will make a statement on the matter. [23615/04]
Amharc ar fhreagraFollowing the establishment of the Irish Financial Services Regulatory Authority and the coming to an end of my Department's lead role in the insurance reform programme, my colleague the Minister for Finance retains overall responsibility for policy and legislation in relation to the provision of financial services in Ireland. My colleague, the Minister for Transport, in the light of broader responsibility for road safety, will take over the lead role in relation to policy and legislation on the availability and cost of motor insurance and any related interdepartmental co-ordination. The transfer of responsibilities to my colleague, the Minister for Transport, has been agreed and will be activated shortly following the completion of logistical issues relating to the transfer of an agreed number of posts from my Department to the Department of Transport.
Comparisons of insurance figures in European countries are available in the European Insurance in Figures June 2003 report published by the Comité Européen Des Assurances, which shows details of "average non-life premium per inhabitant". These figures include motor and public liability insurance.
The figures for 2001, which are the latest given, show that of 29 European countries listed, Ireland ranked fourth highest with a value of €1,123, Luxembourg was highest with a value of €2,084, Switzerland was second highest with a value of €1,642, the Netherlands were third with a value of €1,125. The United Kingdom, with a value of €1,072 was fifth highest. Estonia was second lowest with a value of €67 and Turkey was lowest with a value of €23. The average premium in Europe in 2001 was €581.
The ratios need to be analysed carefully. The figures comparing premium amounts to the number of inhabitants do not correspond to sums actually paid by insured persons and in addition they do not always include only or all premiums paid by the inhabitants of the country concerned.
These 2001 comparisons do not reflect recent experience in Ireland, as a result of the Government's insurance reform programme. Indications to date are that the cost of insurance in Ireland is falling. The CSO publishes monthly indices of costs for a number of classes of insurance. These statistics show a reduction of 15.2 index points, 14.1%, in motor car insurance between the months of April 2003 and August 2004, which is the latest figure available.
