Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I would like to put it on the record of the House that I have also heard of dozens of such cases. One gentleman came to me whose insurance premium had increased from €700 to over €1,000. He pursued the company and went to a different broker. The broker went to a number of companies and eventually got back to the company this gentleman had been with. He managed to get his insurance for the same price as previously because he used a different broker. There are many anomalies in the motor insurance and it is difficult to put a figure on them. That is the way the insurance companies operate.

It is important for people to recognise a couple of factors. The 57% increase was from a base that was too low. Companies established themselves here and went after market share. There was a price war and price wars never turn out well. The cost of insurance was actually too low. They were not operating from a proper base. Reducing premiums by 16% is a good start, although it is only a start. There are many other recommendations which will eventually be implemented.

On the example the Senator gave, we are asking the insurance companies to explain why insurance premiums have increased. They have to put the reason down on paper and give a proper explanation to each individual as to why the underwriters feel the premium should increase. That is another example of one of the more than 70 recommendations upon which the Government is acting.