Returns made on investment income will be one of the issues to be examined by a 17-member Motor Insurance Advisory Board, which was launched by the Minister of State for Science, Technology and Commerce, Mr Treacy, yesterday. Figures for 1997 are not yet available, but one industry source said that the estimate was for investment income to amount to more than £135 million, but the underwriting loss to be in excess of £110 million, leaving a profit of about £25 million.

In the year before, investment income amounted to £121.38 million, and underwriting losses to £90.12 million, leaving a profit of £31.26 million.

At yesterday's launch, the board's chairwoman, Ms Dorothea Dowling, said that one of the big issues was to satisfy the public's requirement for information, and to show that the premium rates being charged were justified.

Among the other issues to be examined were the overall cost of insurance claims, whether claims were being settled too easily, and whether compensation was fair and reasonable.

Ms Dowling is CIE's group liability manager.