Harney woos British insurance firms

THE Government hopes to reduce insurance costs by luring more than 30 companies to do business in Ireland.

Yesterday, armed with details of the reform of the Irish insurance environment, Tánaiste Mary Harney went on a major charm offensive by addressing 100 key insurance executives working with 33 British-based companies.

The Tánaiste's credo is simple: "Attracting more players into the Irish market will benefit consumers."

Ms Harney met withthe insurance movers and shakers in the Lloyds building in London, an encounter which allowed her the opportunity to outline the progress made in implementing the various elements of the Government's package for reform of the Irish Insurance market.

The Tánaiste underlined what she described as the positive impact measures implemented by the Government have had on both operating costs of insurance providers in the Irish market as well as on premiums paid by policy holders across different types of insurance.

"The Central Statistics Office (CSO) monthly index shows there was a reduction of 14.5% in motor car insurance between June 2003 and June 2004.

A recent survey of motoring costs published by the Automobile Association shows an average 22% fall in motor premiums over the previous 12 months.

Discussions with brokers would suggest that there have been similar reductions in the range of at least 20% to 25% in the cost of employers' liability insurance," she said.

The Tánaiste said that the numerous measures introduced by the Government have led to a better functioning insurance market.

"The Irish Insurance Federation (IIF) recently revealed that the 20 non-life insurance companies operating in the Irish market made a combined operating profit of €747m in 2003.

Insurers profitability has led to reductions in insurance premiums and enhances the attractiveness of the market to prospective new entrants, and this is the real reason behind my visit to London today," she said.

The Tánaiste believes that by enticing a larger number of insurance providers to write business in the Irish market will deliver increased competition and bring about even greater reductions in premiums.

"The success of our reforms and the interest those reforms have created in the Irish market are clearly underlined by the strong interest there has been in attending.

"I hope that those attending who are not already part of the Irish market soon will be," said the Tánaiste.