Insurance reform inaction hinders premium cuts

THE Alliance for Insurance Reform (AIR) says Government inaction on insurance reform provides insurance companies with reasons to avoid insurance premium cuts.

However, AIR has welcomed the appointment of Patricia Byron as chief executive designate to the Personal Injuries Assessment Board.

AIR chairman Gerard McCaughey said the alliance looked forward to seeing the board speedily assess uncontested personal injury claims, “thus delivering just compensation to those injured in an accident beyond their own control, while also reducing the number of unnecessary claims in the courts.”

Mr McCaughey stressed his alarm at the lack of promised progress on insurance reform overall. “Insurance reform is still a long way from completion. Last year, the Tánaiste and Minister McDowell promised the PIAB Bill and the Civil Liabilities and Courts Bill would be delivered by the end of 2003,” he said. “The PIAB Act has not yet been commenced, premises have not been secured and a large number of staff are yet to be recruited to work on the board.

“The Civil Liabilities Bill is still unpublished, and most importantly, business insurance premiums are not coming down, but are, in some cases, still rising,” he said.

“AIR members, particularly those in small specialist industries, are still experiencing huge insurance increases or are unable to secure insurance at all. Jobs are still being threatened or lost, which is why the promised insurance reforms must be put in place immediately. When this happens, insurance companies will have no acceptable reason to keep business insurance premiums at current levels”, he said. “Insurance companies continue in their disingenuous public relations campaign, highlighting 5%-10% reductions in motor insurance premiums, while taking 100%-200% increases in business insurance from Irish businesses.

“This is twisting the truth and affecting the overall competitiveness of the Irish economy. It must stop immediately,” he concluded.