Insurance premiums have fallen back to 1999 levels with more reductions likely if the Government follows through on its insurance reform programme, insurers told an Oireachtas committee yesterday.
But lack of road safety enforcement, "disappointing" action on flood defences, delays in driver testing and teething problems with the Personal Injuries Assessment Board (PIAB) were all identified by Allianz as barriers to further cuts in premiums.
Quinn Direct told the Oireachtas Joint Committee on Enterprise and Small Business that there were still major inconsistencies in the levels of personal injury awards made in court and that compensation levels were out of line with the rest of Europe.
The PIAB's Book of Quantum, which is based on historical awards here, is in danger of institutionalising the problem, according to general manager Kevin Lunney.
Employers group Ibec disagreed that the cost of liability insurance had fallen last year.
It told the committee that, according to a survey of its 7,000 members, the cost of this insurance continued to rise in 2004, albeit by 3.8 per cent compared, compared to jumps of 52 per cent in 2002 and 28 per cent in 2003.
This contrasted with figures from Quinn Direct, which pointed to a 17 per cent fall in its commercial liability premiums since April 2004.
Committee chairman Donie Cassidy TD rejected Ibec's criticism that the Government had faltered in its commitment to reform. Hibernian General Insurance said a recommendation by the Competition Authority that insurers be required to issue renewal notices to liability customers two months ahead of the renewal date could cause difficulties.
In practice, the renewal dates would be prepared three months in advance of the renewal date meaning a quarter of all claims would occur between the preparation of renewal notices and the actual renewal date, said Dick O'Driscoll, managing director of Hibernian General Insurance.
"My concern is that an increased number of customers would get into difficulty because they won't declare a change in circumstances at renewal."
Mr O'Driscoll also expressed concern about data sharing provisions proposed in order to attract new entrants to the market.
He said Hibernian had invested heavily in flood mapping technology to help it insure properties that might previously have been uninsurable and that it would be unwilling to pass on that information to an overseas insurer entering the market.
