Dáil Éireann - Volume 653 - 08 May, 2008

Written Answers. - Insurance Industry.

Deputy Arthur Morgan asked the Minister for Transport if he will introduce measures to reduce the cost of motor insurance, particularly for young drivers. [17432/08]

  Deputy Noel Dempsey: Motor insurance is provided by private companies in an open and competitive market where consumer interests can exert influence by seeking quotes and comparing costs before purchasing. The Financial Regulator oversees insurance companies.

[1080] The Government’s insurance reform programme, initiated in 2002, has resulted in cheaper and more widely available motor insurance. In general, the cost of motor insurance has declined by 2.8% in the last 12 months and overall, motor insurance premia have fallen by 41% since April 2003. Various factors have contributed to this reduction including the establishment of the Personal Injuries Assessment Board, improved road safety and increased competition in the open market.

In the case of young drivers it has been represented that the cost of insurance is still too high. As part of the Social Partnership Agreement Towards 2016, a review of the cost of insurance for young people, 17 to 24 years of age, was commissioned in September 2007. I expect a report on this matter shortly.