Brendan Howlin (Wexford, Labour)
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Question 357: To ask the Minister for Enterprise, Trade and Employment if, in view of the recent huge profits revealed for the insurance sector, he has satisfied himself that the industry is passing on the benefits of reduced claims to consumers; and if he will make a statement on the matter. [25440/05]

Micheál Martin (Cork South Central, Fianna Fail)
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The financial regulator, under the aegis of the Minister for Finance, is responsible for the financial supervision of insurance companies here. 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 to make judgements relating to levels of reserves and profits in insurance undertakings. The financial regulator now receives those statutory returns and has responsibility for protecting consumer interests regarding insurance.

The insurance reform programme brought about improvements in the functioning of the Irish insurance market, and very real reform has been delivered. The reform programme, no doubt, has contributed to recent improvements in profitability in the insurance sector. It was expected that the insurance industry would ensure that reductions in insurance costs translate into significant reductions in premia to consumers on a quid pro quo basis.

I understand there was a reduction of 23.5% between October 2002, when the reform programme was launched, and August 2005 in motor insurance, according to the figures of the Central Statistics Office. Clearly, competition in the market is driving premia downward. My Department does not collect any figures in respect of public or employers' liability.

It must be noted that EU law prevents Governments from intervening regarding premium levels or risks that insurers are prepared to underwrite. Insurers generally make decisions about whether they are prepared to quote for a particular risk, and if so, at what premium level, based on their underwriting experience or assessment of that risk in the market.