Tanaiste to announce new measures to reform insurance

The Tanaiste, Mary Harney, is announcing a number of key measures today aimed at reforming the insurance industry in Ireland in an attempt to substantially reduce the cost of insurance claims and premiums.

The Insurance Industry Federation (IIF) claims that even though insurance premiums, including motor insurance, have increased by between 20 to 24% last year, it has been experiencing losses.

In the motor sector alone, the IIF claims that the IIF claims that €67m was lost largely due to the cost of personal injury claims.

The Tanaiste has been asked to act upon the recommendations made by the Motor Insurance Advisory Board (MIAB). These include the establishment of a Personal Injuries Assessment Board (PIAB) and a special Garda Road Traffic Corps.

It's thought that the PIAB alone could effectively lead to a reduction in premiums of between five and 10%.