Bernard Durkan (Kildare North, Fine Gael)
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Question 527: To ask the Minister for Enterprise, Trade and Employment the way in which insurance costs here compare with those in the rest of Europe; if, in view of the huge profits recorded by insurance companies here, he will give assistance to ensure that insurance premiums will be reduced and the benefit of same passed on to the public in early date; and if he will make a statement on the matter. [29551/05]

Micheál Martin (Cork South Central, Fianna Fail)
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The National Competitiveness Council, NCC, in its annual competitiveness report 2005, found that of the 16 countries benchmarked, Irish expenditure on non-life insurance was the fourth highest. However, the NCC also found that the rate of growth in the cost of insurance has slowed down substantially in recent years. This can be attributed to the series of initiatives the Government has pushed through to reform the insurance sector. The action taken by Government to ensure healthy competition in the insurance sector had already seen benefits for consumers.

The Personal Injuries Assessment Board, PIAB, is one of the key initiatives of the Government's insurance reform programme. The PIAB's first annual report shows that PIAB assessments to date have been delivered approximately three times faster and at a delivery charge four times cheaper than under the litigation system.

Supervision of insurance undertakings is the responsibility of the financial regulator, formerly known as the Irish Financial Services Regulatory Authority. The financial regulator has a wide regulatory remit covering consumer protection and prudential supervision of practically all of the financial services industry, including insurance, and the services provided by it.

It will be noted that the annual report of the financial regulator for the 2003-04 period highlights its role in addressing its mandate in the areas of consumer protection, the prudential supervision of financial service providers, including providers of insurance, and in establishing and building a new regulatory structure. Indeed the regulator's mission statement is "to help consumers make informed financial decisions in a safe and fair market and to foster sound dynamic financial institutions in Ireland, thereby contributing to financial stability".

In addition, the regulator's strategic plan 2004-06, has identified two of its three high level goals in addressing its mandate as helping consumers to make informed choices through education and codes of practice in a fair financial services market" and "having a regulatory system that fosters safe and sound financial institutions while operating in a competitive and expanding market of high reputation".

Before the establishment of the Financial Regulator my Department regulated and supervised insurance undertakings. I had ministerial responsibility and my Department had access to detailed statutory returns which would have allowed my Department make judgments relating to levels of reserves and profits in insurance undertakings. The Financial Regulator now receives these statutory returns and has responsibility for protecting consumer interests in respect of insurance. The Financial Regulator comes under the aegis of my colleague the Minister for Finance.