Mr. Ken Murphy:

It was certainly suggested in the statement by the Central Bank that the current extraordinary surge in premiums was driven by a profit motive. The members of the committee will be glad to know that I have been following their deliberations online over recent days. There was an interesting exchange with Mr. Faughnan of AA Roadwatch. Senator Horkan began probing with questions about the extent to which these extraordinary and amazing increases of up to 70% over two years were to restore losses on balance sheets or in reserves, and whether they represented a prudent approach taken by an insurer or represented super-profits, and to what extent. Of course Mr. Faughnan replied that he did not know. This a perfect example of the extent to which data, insight and information can inform debate. We could actually know how much of the increase is super-profits and how much is completely justifiable, to what extent there is paranoia or excessive prudence being displayed now and whether the pendulum has swung to the other side. It is thematic in light of what we have being saying. It seems there is an absence of the level of insight that appears to exist in other jurisdictions and which could be, therefore, legitimately available. It seems to us that the Legislature could prise open what we call the black box, but unless that is opened it is questionable whether we could have the opportunity for more potential insurers. There are numerous other insurers in Europe that are not in this market. In those circumstances they may be able to see to what extent this is profitable work and determine whether they should come in and join the market.