David Norris (Independent)

Brokers are a mixed bunch. I had a broker who was a decent old school friend who did as much as he could for me. Brokers are convenient for people like myself who are phobic about forms. However, there are sometimes problems on the structural side of things as they are sometimes tied to a particular company and one does not know how much commission is being charged because they do not inform customers. Sometimes the renewal notice goes to the broker who holds onto it for so long that the customer cannot go to the market for an individual quote. The customer never actually knows what is being charged. I would like to receive a statement showing all the charges involved and which would also include the number of companies from which quotes were received. Sometimes they only get quotes from one or two companies which is unacceptable. Customers are entitled to a fair deal from these agencies but they are not getting it at the moment.

Senator Leyden mentioned that some large companies get concessions and write-offs in terms of brokerage fees. Bully for them. However, I am not bothered about large companies. I am much more bothered about the unfortunate individual who must scrape together an insurance premium. It appears that, as with all industry, if a business is a large commercial concern, it can use its financial might to bargain. However, the individual is in much greater danger of not being allowed access to information which would give a proper rational view of the market.

Two striking statements are made early in the report. Page 8 states that the conclusion of the preliminary report was that both regulation and industry practices gave rise to serious concerns with regard to competition in the insurance broker market. It could not be clearer from this that it has been found that there are concerns about the lack of competition. The second statement went on to say that a lack of market transparency, particularly vis-À-vis the operation of the broker market, results in buyers of insurance lacking crucial information that would enable them to make more proactive and informed choices that would benefit them and drive greater competition in the market. That is the conclusion of the report. I cannot see how anybody can suggest that the whole insurance industry has been exonerated by the report because it certainly has not.

I do not believe that either household or motor insurance reflect the reality of the internal Irish market. There are external forces operating here but we do not get a balance in the market and do not have European companies entering the market in any large way. The report examines this issue and draws some conclusions on it.

I wish the report was written in more accessible language. There is too much gobbledegook and too many tongue twisters in it. I will leave it to Senator Quinn to make further comment.

I draw the Minister's attention to the fact that seven or eight questions are asked on pages 26 and 27 which the Department and insurance industry should examine and for which they should produce the answers for the next report.