Vested interests 'pushing up insurance costs'

A new report on the motor insurance industry states that premiums are being pushed up by vested interests and inefficiencies.

The Motor Insurance Advisory Board's report states that these vested interests and inefficiencies may account for half of the premiums paid by law-abiding motorists.

The study recommends that a personal injury assessment board should be set up with the aim of reducing the cost of delivering compensation.

Other conclusions are that young females' insurance costs are not justified by claims, while their male counterparts are providing substantial insurance losses.

Litigation costs are also adding a huge 40% to every euro paid in compensation and uninsured drivers hike up costs by 8% annually.

The government is setting up a high-level implementation body to report back on the findings within three months.