Tanaiste Mary Harney has published the Government's action plan to tackle the high cost of insurance. The plan contains 67 recommendations and is based on a report last April by the Motor Insurance Advisory Board.
The Government hopes the recommendations will bring down the cost of insurance by 31% over three years. Ms Harney said jobs were being lost because of the high cost of insurance and the situation could not continue.
The interim members of the Personal Injuries Assessment Board have also been appointed. Its chairwoman will be Dorothea Dowling, one of the authors of the Advisory Board's report.
The PIAB is being set up immediately on an interim basis, while legislation to put it on a statutory footing is to be a priority. The action plan for the implementation of the MIAB's recommendations will also be published.
The Tanaiste describes this as a comprehensive statement of how the MIAB's 67 recommendations will be tackled. It includes measures aimed at improving court procedures, providing greater information to the consumer and implementing and enforcing of the Road Traffic Acts.
The Tanaiste is also to chair a ministerial committee to oversee the implementation of the MIAB's recommendations.
Launching the programme today, Ms Harney also highlighted the study being undertaken by the Department and the Competition Authority into the insurance market. She said this would provide important pointers to the reasons why there were not more foreign insurers willing to underwrite insurance in Ireland.
She also said the acid test of the package would be its impact on premiums and the avilability of insurance, adding that there was an obligation on the industry to ensure this translated into significant reductions in premiums.
The employers' organisation IBEC welcomed the Tanaiste's announcement, but said it was still concerned that vested interests would hinder progress on key issues.
IBEC's director of enterprise, Brendan Butler said he was concerned that certain segments of the legal profession would continue to try to the PIAB to reduce the cost of insurance.
The Alliance for Insurance Reform also welcomed today's move, but said this was only the beginning of the reform process. The Chambers of Commerce of Ireland also welcomed the Tanaiste's announcement.
