MIAB - MOTOR INSURANCE ADVISORY BOARD The Motor Insurance Advisory Board was established by the Government to investigate all factors affecting the cost of motor insurance. In particular, the Government asked the board to enquire into the basis upon which some categories of drivers pay considerably more than others for such insurance. The MIAB's final report was released on 17th April 2002 and confirmed what everybody already knew - that Irish mororists, particularly young drivers are being grossly overcharged for motor insurance. The full report is too big to reporduce here (over 700 pages) but we have summarised the main points of the report here. The full report can be purchased from the Government bookshop. Insurance companies make profits on policyholders of all ages apart from a small percentage of 17-18 year olds with a provisional licence. They make their biggest profits on young drivers. Policyholders aged 19-24 are a very profitable segment for the motor insurance industry. In 1997 the 19-24 age cohort which accounts for just 8% of exposure produced a surplus of almost £9.5 million (28% of the total surplus reported for 1997). Litigation costs (legal and expert fees) add 40% to every €1 paid in compensation for injury sustained in motor accidents. Vested interests and inefficiencies may collectively account for as much as half the premium paid by the law-abiding motorist Motor Insurers in Ireland reported 11 times the post tax profit earned by their UK counterparts between 1983 and 1999 Charges for young female policyholders are not justified by their claims cost and these policyholders have been described by insurers as "subsidisers" The board also registered particular concern about the position of senior citizens and those managing disabilities   Back Home