The Insurance Ombudsman Caroline Gill has said she will prioritise the issue of bringing the cost of motor insurance premiums under the terms of reference of her office.
This follows the public outcry over findings in the interim report of the Government backed Motor Insurance Advisory Board, that insurance companies make bigger profits on drivers under 25 than in almost any other category, despite previous claims that huge premiums for young drivers were necessary because they were an unprofitable risk.
Currently the Insurance Ombudsman office, which is a self-regulating body set up by the insurance industry, has no power to investigate complaints relating to motor insurance premiums.
Gill said she was aware the report had raised significant public concerns, but that she could not comment until the full report was completed at the end of the year.
The Ombudsman's comments come as her office launched its annual report for 2000 which indicated an 11% increase in written complaints (1,034 compared to 927 in 1999), with those relating to motor insurance and life insurance topping the list. Telephone complaints rose 27%, and in the first three months of 2001 complaints were 25% higher than the same period last year.
The Ombudsman said that the increase related to the success of the body in raising its profile rather than a greater public antipathy to insurance companies' activities.
She said her decision on 50 complaints made against Irish Life in relation to its unit link life product would be released soon.
She also said she was confident that negotiations to extend her terms of reference to cover insurance brokers as well as insurance companies would soon be successfully concluded.
