Sir, – In January this year, the Cost of Insurance Working Group, chaired by the then-minister of state Eoghan Murphy, issued its report, which contained 33 recommendations aimed at reducing the cost of car insurance. Six months on, I am not aware that any of these recommendations have actually been implemented. On the contrary, I read in your Business News section of new legislation to compensate consumers of insolvent insurance companies ("Higher motor insurance premiums expected after reform Bill", July 6th). This of course will be funded by the insurance industry, which, as the Government blithely admits, will pass the cost to consumers through increased premiums. I wonder has it occurred to anyone in Government that by prioritising and implementing the working group's recommendations, it might at least negate the necessity for higher premiums? Equally, why do we not see a tighter regulatory regime designed to prevent such insolvencies in the first place? In fact what is being implemented is most likely to attract and encourage reckless trading and relieves consumers of any responsibility to be wary when offered cheaper options. – Yours, etc,
DEREK MacHUGH,
Bray,
Co Wicklow.