Vested interests in the legal profession and the insurance industry have been accused of attempting to stymie Government proposals to bring down premiums.
The Alliance for Insurance Reform (AIR) today launched a nationwide campaign in support of legislation setting up a personal injuries assessment board (PIAB) due to be passed in January.
Launching the campaign, AIR chairman, Mr Gerard McCaughey, attacked the "appalling and self-serving behaviour" of the legal profession, accusing it of trying to subvert reform.
"No one should under estimate the power of the legal profession and their ability to thwart the wishes of our legislators," Mr McCaughey said.
He also noted that a recent Oireachtas committee had criticised insurers for not giving a full explanation for increases in premiums.
Mr McCaughey praised the Tánaiste, Ms Harney, and the Minster for Justice, Mr McDowell, for their efforts to bring about reform despite what he said are the efforts of "powerful lobbies".
It is widely recognised that potential new entrants into the insurance market have been put off by poor returns due to the high cost of litigation in Ireland. The slow processing of claims through the courts and legal fees are seen as key the reason why insurance companies have returned low profits in recent years.
However, last year profits in the industry topped 180 million and the motor insurance reported a drop in claims. Mr McCaughey said, allied to the exp[ected introduction of the PAIB, these factors should encourage new entrants to the market.
It is intended that the PIAB will initially with employers' liability and motor insurance claims where liability is not contested.
AIR, which represents around 800 businesses of various sizes, says thousands of people have been made redundant and some companies have been forced to borrow to meet the high cost of insurance. Others have been forced to close because of high premiums which in some instances have increased by 1,000 per cent in recent years, they claim.