MIAB unveils critical report

The Irish motor insurance industry reported 11 times the total post-tax profit of the UK motor insurance industry, the Motor Insurance Advisory Board (MIAB) has reported.

Commerce minister Noel Treacy handed down the controversial and much-awaited MIAB report last week, which had been expected to be heavily critical of the insurance industry.

It found charges for young women policyholders were not justified, litigation costs added 40% to every euro paid in compensation for motor accident injuries and young men drivers were involved in the most serious claims, at a frequency disproportionate to their representation as policyholders.

It also found that "vested interests and inefficiencies" accounted for up to half of the premium paid by the "law-abiding motorists".

The MIAB report contained 67 recommendations in total, which Treacy said would result in the setting up of a "high-level implementation group" to progress the recommendations and report to government within three months.

Treacy said he would also introduce new regulations that would require insurers to give at least 15 days' notice of renewal terms.

He said he would refer the MIAB report to the Competition Authority and the Equality Authority, and the Irish Insurance Federation for immediate response.

The MIAB would continue to monitor and progress the recommendations within the industry up to 31 December, Treacy said.