Since the transposition into Irish law of the EU Third Framework Insurance Directives in 1994 European Communities (Life Assurance and Non-Life Insurance) Framework Regulations, 1994, insurance companies authorised in any member state may provide insurance cover throughout the EU on the basis of their home country authorisation. This has opened up the Irish market to competition from insurance providers in other EU countries and has increased choice of product to the benefit of the Irish consumer. Currently, there are 27 insurers authorised to underwrite motor insurance in Ireland – a similar number are authorised to underwrite public liability insurance cover. Fifteen companies have their headquarters in Ireland, 11 are based in other EU member states and one is a non-EU insurer. In addition, the removal of the "cap" on brokers' commission will encourage further competition in the Irish market.
There has been extensive examination of the factors contributing to the relatively high level of premiums, focusing on a number of the key cost elements. These include the costs associated with settling personal injury compensation claims and the factors contributing to the cost of premiums for compulsory motor insurance. The establishment of a personal injuries assessment board by 2002 is being pursued by an implementation group on behalf of the Government. In addition, the Motor Insurance Advisory Board will report later this year and I will take whatever further action is appropriate towards the goal of the reduction of the cost of motor insurance. In the final analysis, the pricing and underwriting of insurance is a matter for individual companies and EU law prevents us from intervening in either.