[article] Motor Insurance Advisory Board Report

mike65

from rte.ie

The chairperson of the Motor Insurance Advisory Board (MIAB) says that it is bad news for consumers that motor insurance premiums have fallen by 20% in since April 2002, because it will detract momentum from further insurance reform leading to even lower premiums.

Dorothea Dowling was speaking following today's publication of the third and final report of the MIAB, the agency set up to spearhead reform of the motor insurance industry.

'There is a lot that can yet be done, and premiums can be reduced even further, but we must keep our foot on the pedal,' she told RTE News.

The MIAB became defunct at the end of September, and now plays no official role to play in insurance reform. The Irish Financial Services Regulatory Authority now regulates and supervises insurance undertakings.


The Finance Minister retains overall responsibility for policy and legislation in relation to the provision of financial services in Ireland, including insurance. The Transport Minister has taken over the lead role in relation to policy and legislation on the availability and cost of motor insurance.

Ms Dowling said she was concerned about a lack of 'joined up thinking' between Government departments to further drive insurance reform.

She says the Department of Transport's responsibility is for road infrastructure and road safety and not insurance reform. She also voices concern over what seems to be a refusal to adopt measures which could encourage the single market.

The MIAB's final report notes that of 67 recommendations produced in 2002 by the MIAB, 41 have been achieved and a further 11 have been partially implemented.

Of the seven recommendations that would fall within the Department of Transport's recommendation, six are still outstanding. However, the report pre-dates the establishment of the Garda Traffic Corps.

The MIAB report states that the cost of tort in Ireland is still very high compared to other countries. The report estimates that it could be 1.95% of 2002's GDP. That would equate to between €1,968-1,577 for each of the 1.28 million households recorded in the 2002 census and compares to $400 in the UK per household.

A Competition Authority survey cites the legal environment here as the least attractive feature among EU markets - this has adverse consequences for the insurance costs of business and private policy-holders.

Ms Dowling acknowledges the objectives of e-government, but said she was surprised that on-line vehicle tax renewal was introduced without the back-up technology to check insurance and NCP compliance.

She says it would be a mistake to believe that issues relating to the litigation system have been resolved with the establishment of the PIAB and the introduction of the Civil Liability and Courts Act 2004.

She added that nothing has yet been done to address the actual level of costs which will continue to be incurred in cases that require court adjudication, although an inquiry is being established by the Minister for Justice. She repeated her call for an independent Legal Services Ombudsman.

Mike.