MORE most categories of Irish driver there is a reasonably competitive market for motor insurance, according to the report.Motor insurance costs have stabilised since 1991 and have declined for the most favourable risk groups.

The market was "relatively as competitive as in the UK and is equitable in that premiums are related to the claims experience of groups of drivers", the consultants said.

But Irish private motor premiums were still the highest of all countries surveyed. Excluding young drivers "who pay higher rates everywhere", premiums were 48 per cent lower in Britain, 10 per cent lower in Denmark, 21 per cent lower in France and 6 per cent lower in the Netherlands.

Premiums are higher in Ireland than in Britain, according to the consultants, because though there were fewer claims these claims were on average four times more expensive. This is partly due to structural reasons but mainly because compensation for personal injuries was higher in Ireland.

"Acknowledging that these contribute to higher private motor premium costs, it is concluded that this premium cost represents the market price which must be paid for the level of benefit demanded by the motorist," the consultants said.

On premium levels for young drivers, the consultants found the high rates were justified by the bad claims experience of this group. The way to lower the premiums was to improve driving performance through, for example, a graduated licence system as in Ontario and the introduction of safety and driving-related topics in transition year in secondary schools.