The Irish Insurance Federation (IIF) has published its own research into motor costs which it says proves it is not overcharging drivers.
This claim has been challenged by Ms Dorothea Dowling, the chairwoman of the Motor Insurance Advisory Board, which is looking at the issue on behalf of the Government.
The IIF study, carried out by independent consultants, looked at the risks associated with various classes of driver. A firm of consultant actuaries - Tilling hast-Towers Perrin - looked at 2.1 million policies and 175,000 claims. Its findings confirmed what the motor insurance industry has consistently maintained - young drivers, and young men in particular, made claims more frequently, made higher claims and inherently presented a higher overall risk. Drivers of cars with large engines also presented a high risk as did Dublin-based drivers and provisional licence holders. The study, presented at a seminar at the Smurfit Business School at UCD yesterday, found that drivers with no-claims bonuses of five years or more constituted a reduced risk. The chief executive of the IIF, Mr Mike Kemp, claimed yesterday the "findings answer many of the accusations levelled at the motor insurance industry over the last number of weeks". He said the study showed insurers were charging fair motor premiums and not making excessive profits. Mr Kemp was referring to the preliminary report of the Motor Insurance Advisory Board. The Government-sponsored body had found that insurance companies made profits on almost every class of driver. It also found that women were contributing more than their fair share while excessive profits were being made on other drivers. Ms Dowling said yesterday it had not yet been formally provided with a copy of the report. Ms Dowling added that the IIF study - contrary to Mr Kemp's assertion - did not appear to address the issues of profitability and equity raised by her group. Its final report is due later this year. The IIF disagreed with the preliminary findings even though it was represented on the body. It threatened to withdraw from the body but changed its mind when threatened with "a more rigorous forum for investigation in this area of public concern". The federation then proceeded with its own study.
It also emerged last March that the IIF had not met the deadline for handing over the information the board needed to complete the report. Mr Kemp said yesterday that a number of companies had still not provided the board with data. He said it now had between 75 per cent and 80 per cent of the information it needed.
