Motor insurance premiums could be reduced if the Government prioritises law enforcement and fully implements the National Road Safety strategy to reduce road deaths and accidents.
The Irish Insurance Federation's (IIF) outgoing president, Mr Vincent Sheridan, said yesterday the Government could improve the current situation by introducing a penalty points system for those convicted of road traffic offences. Law enforcement officials should particularly target drink-driving, speeding and seat belt use, he said.
In addition, the Garda should be provided with additional technology and manpower to allow enforcement of the Road Traffic Act.
Mr Sheridan said solicitors and members of the public had a part to play in reducing high insurance costs. "In my view, the most serious issue affecting the level of motor premiums, and one area in which no progress is apparent, is the litigious environment that exists in Ireland and the very high level of awards handed down by the courts," he said.
Mr Sheridan, speaking at the IIF's annual lunch, questioned the contribution of the legal profession to the State's current lawsuit-driven culture. Despite criticism of the motor insurance industry in relation to costs, it has no option but to set premiums at a level which reflects the claims environment, he said.
He denied that a perceived lack of competition could be blamed for inflated premiums levels. Introduction of the single financial regulator is another issue of concern for the industry.
Although the IIF supports such regulation, it is concerned about the regulator's function and funding. The establishment of a single financial regulator encompassing both prudential supervision and customer protection is a very ambitious plan.
The IIF is seeking a process of communications and consultation prior to the introduction of legislation.
The insurance industry group endorsed the National Pensions Policy Initiative and in particular the introduction of Personal Retirement Savings Accounts (PRSAs). It also welcomed the establishment of a national pension fund to meet the long-term Exchequer liability for pensions.
At the Federation's annual general meeting, the group chief executive of Allianz-Irish Life Holdings, Mr John O'Hanlon, was elected president.
