Madam, - In an interview with Siobhán Creaton, John O'Neill, the AXA chief executive, says: "The only way to turn motor insurance into a profitable business is to stop accidents" (Business This Week, July 4th).
Ms Creaton writes that "O'Neill proudly boasts that AXA Ireland made profits of €57 million in 2002 and expects to extract broadly the same amount of money from its customers again this year." The general impression given in the interview is that lack of enforcement of road safety is the principal reason for high premiums.
I have been insured by AXA for several years and enjoy full no-claims discount. My cover is comprehensive with a few extra benefits and with my wife as a named driver. My premium from July 2002 to July 2003 was €566.83. The premium requested on my renewal notice for next year (July 2003 to July 2004) was €662.10, an increase of 16.8 per cent. I did some shopping around and was offered roughly the same package for €530 by a major competitor. I informed AXA of this and after a pause of less than one minute they offered to insure me for €520. This was 21.5 per cent less than the premium originally requested from me and 8.25 per cent less than last year's premium.
Contrary to John O'Neill's stated view, it would seem that enforcement of road safety is not the only way to reduce insurance premiums. - Yours, etc.,
DONAGH HEALY, Circular Road, Galway.