Insurance companies could cut premiums by a quarter and still make profits, an Oireachtas Committee claimed today.
The Oireachtas Enterprise and Small Business Committee today published its Third Interim Report on reform of the Irish insurance industry at Leinster House.
The all-party body noted the profits of the five largest companies jumped by 46 per cent between 2003 and 2004 and topped €1 billion last year.
Committee chairman Donie Cassidy said the figures show huge profits are being made at the public's expense.
"If anybody is making a billion euro profit in a four million population market, there is certainly scope for 25 per cent more downward movement," the Fianna Fail TD for Longford-Westmeath said.
"With the profits of insurance companies and the buoyancy of the economy, I certainly would see it as a very attractive market to do business in."
Mr Cassidy urged consumers to shop around, acknowledged that motor and employers' liability insurance premiums had fallen in the past 18 months.
Today's report, which was based on hearings held between April and November, insisted that insurance premiums could only be significantly reduced by fewer road fatalities, a capping of personal injury awards and competition in the insurance market.
It also called for more speed cameras and premium discounts for drivers who allow in-car devices to monitor their speed.
Consultant to the committee, Myles O'Reilly said one insurance firm was offering a discounted scheme for young drivers who agreed to have their speed monitored. "The committee believes that this scheme should be extended to all drivers and all companies," he said. "A driver voluntarily agrees to have their speed monitored and for that reason will get a reduction in their premium."
Mr O'Reilly said the committee had no problem with insurance companies earning very good profits as that was evidence of a good market out there. "Such a market is also likely to draw in competitors and thus improve competition," he added.
PA