An alliance of business groups is examining the possibility of setting up an insurance intermediary to source insurance for its 50,000-plus employers in the face of rising premiums.

"We represent 500,000 employees, in excess of 50,000 employers. That is a fine, big piece of business that you could actually bring anywhere around the world, so it is something that we're looking at," said Mr Mark Fielding, chief executive of ISME, one of the 17 groups involved.

The alliance said there was evidence of mounting job losses and company closures due to increasing insurance premiums and it warned that the crisis threatened the viability of member companies in each association.

"The biggest cost issue for business is the increasing level of insurance premiums," said Mr Fielding. He said the cost of insurance in Ireland grew by an average of 48 per cent in 2001 and the trend was continuing this year with estimates ranging from 50 per cent to 200 per cent. He added that 20 per cent of companies were predicting job losses as a result of insurance problems.

The alliance outlined seven recommendations which it said required immediate attention.

The introduction of a single regulatory authority;

The immediate introduction of the personal injuries assessment board;

A book of Quantum similar to the system that operates in the UK;

An affidavit of claims system;

Legislation obliging insurance companies to notify business in advance of premium renewals and not to make settlements without recourse to the insured;

The Government levy to be available to companies experiencing difficulties as a result of the insurance issue;

A matrix of costs.