Fianna Fáil Spokesperson for Transport Robert Troy says the collapse of Enterprise Insurance will ultimately lead to higher premiums for all Irish motorists, and highlights the current turmoil in the insurance industry.
Deputy Troy said, “The collapse of Enterprise Insurance raises serious questions over the functionality of our motor insurance industry. There have been many reports which point out that the 14,000 policy holders with Enterprise Insurance will be compensated following its collapse. This is of course welcome, but it’s only half the story.
“Ultimately the Irish tax payer will be forced to pick up the tab if any claims are made by policyholders formerly insured with Enterprise Insurance. This will lead to higher premiums for all motorists. Over the past few years premiums have increased dramatically –this year alone they’ve risen by a staggering 38.8% to the end of June. This is simply not sustainable.
“We have a serious problem with our motor insurance sector. The open nature of the European market has allowed companies which are regulated in other territories, such as Gibraltar and Malta, to operate in Ireland. This principle in itself is perfectly acceptable, but a serious issue arises when our Central Bank is unable to carry out adequate monitoring and inspections of these companies.
“The Government is going to have to pursue a solution to this problem at a European level. We have to ensure that there is a level playing field in the insurance market – the same standards of regulation need to apply across the board. This is the only way we can boost confidence within the motor insurance industry. The Government has ignored problems in the insurance industry to date. It’s time Ministers recognised that ignoring this problem won’t make it go away.”