Bernard Durkan (Kildare North, Fine Gael)
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Question 131: To ask the Minister for Enterprise, Trade and Employment if he is satisfied regarding the competitiveness of the insurance industry here in comparison with other European or Eurozone countries; and if he will make a statement on the matter. [8677/08]

Micheál Martin (Cork South Central, Fianna Fail)
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Motor insurance is provided in an open and competitive market where consumers can exert their influence. The cost of Motor Insurance, generally, has declined by 11% in the twelve months to December 2007. Motor insurance prices have dropped by 40% since April 2003 and at the end of Q3 2007 were at levels last seen in November 1997. This is due to various reasons such as increased competitiveness in the Irish market, the Personal Injuries Assessment Board and increased Garda enforcement including alcohol testing.

There are no comparative figures to assess motor insurance competitiveness across the EU. The nature of such insurance varies from State to State. In most of Europe, with the exception of Ireland and the UK, motor insurance is based on the vehicle rather than on the driver. Other factors which influence costs include size of market, medical costs and social supports which are available to injured persons together with repair of vehicle costs. Under the Social Partnership Agreement "Towards 2016" the Government gave a commitment to review the cost of motor insurance for young drivers. The Department of Transport appointed external consultants in September 2007 to examine this matter. The report is expected shortly.

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. The Financial Regulator comes under the aegis of my colleague the Tánaiste and Minister for Finance.