TD calls for single insurance market

Fine Gael has called on EU Commissioner Mr Charlie McCreevy to bring forward proposals for a single market in insurance products.

Mr Phil Hogan, spokesman on enterprise, trade and employment, said the internal market commissioner should act to increase competition and lower insurance premium prices.

"It is clear that higher profits for insurance companies are not being passed on to lower insurance rates for customers," said Mr Hogan. "The main reason for the slow reduction in insurance rates is due to the lack of competition in the Irish market."

The Irish insurance industry has been the focus of intense examination since the publication of the report of the Motor Insurance Advisory Bureau (MIAB).

The report triggered a series of reforms which, alongside the improved underwriting performance by insurers, has seen premiums drop, particularly in the motor sector.

However, Mr Hogan argues that lack of competition has "resulted in higher costs and a lack of competitive pressures, which would otherwise drive down all insurance products in terms of cost."

Mr Hogan, a former insurance broker, said Fine Gael would like to see the completion of the single market for insurance products. The party believes this is the only way the Irish consumer will get a "meaningful choice in rates and cover from a larger number of insurance companies".

"Mr McCreevy recently indicated his intention to harmonise mortgage products across the EU," said Mr Hogan. "I welcome this initiative and I would appeal to him to do likewise in respect of insurance products."