Bernard Durkan (Kildare North, Fine Gael)
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Question 236: To ask the Minister for Enterprise, Trade and Employment the way in which insurance costs here compare with those in the rest of Europe, the US, Australia and other countries to which Ireland exports; and if he will make a statement on the matter. [12492/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 237: To ask the Minister for Enterprise, Trade and Employment the extent to which public liability, motor and other insurance costs are competitive in the context of all European countries; and if he will make a statement on the matter. [12493/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 236 and 237 together.

The National Competitiveness Council in its annual competitiveness report 2004 mentioned the issue of insurance costs in Ireland. The NCC's commentary was based on data published by Swiss Re sigma. This information, based on 2003 figures, depicts insurance premiums per capita for non-life insurance for 16 countries and includes both motor and public liability insurance. It should be noted that this information covers expenditure on insurance, which is only a proxy for the relative price of similar insurance services in different countries. It cannot be seen as a definitive competitiveness barometer for insurance costs.

Of the 16 countries surveyed, Ireland's expenditure on non-life insurance was the fifth highest with a value of $1, 356. Switzerland was the highest with a value of $2,228, the United States were second highest with a value of $1,980, the Netherlands were third with a value of $1,532. The United Kingdom with a value of $1,441 was fourth highest. Hungary was the second lowest with a value of $148, whilst Poland was the cheapest with a value of $102. The average expenditure for the EU15 was $974 and the OECD's average was $1,008.

However, these figures need to be analysed carefully as they do not always include only or all premiums paid by the inhabitants of the country concerned. The NCC also reported that the use of a tort system in Ireland increases private premiums vis-À-vis Europe and the USA where the use of a no-fault system reduces the level of expenditure on insurance premiums.

Recent experience in Ireland indicates that the cost of insurance is falling as a result of the Government's insurance reform programme. The CSO publishes monthly indices of costs for a number of classes of insurance. These statistics show that there was a reduction of 20% in motor car insurance between the months of April 2002, when the first Motor Insurance Advisory Board report was published, and October 2004. There are also reported reductions in the cost of premia for public and employer liability insurance.