Dáil Éireann Debate, Friday - 16 September 2016
202. Deputy Sean Fleming asked the Minister for Finance the action he is taking to deal with the increase in the cost of car insurance; if he will introduce awards for injury similar to that which operates in other countries in order that there is more certainty around the matter; and if he will make a statement on the matter. [25123/16]
View answerThe Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy TD, is undertaking a review of the factors which are influencing the increased cost of motor insurance. This review will consider the issue of the level of personal injury awards, particularly compared with those in other countries.
The Working Group brings together all the relevant Departments and Offices involved with the process. Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.
The core areas to be examined by the Working Group in this first phase are:
- The motor insurance sector generally, at present and in recent years
- The effects of legal costs and litigation processes on insurance costs
- The current claims compensation arrangements and the cost of claims
- Insurance data and information
- The impact of accident rates
- The impact of unlawful activity on the insurance sector, and
- Other market issues.
Because the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, Minister of State Eoghan Murphy has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has already commenced. The sub-groups will be holding their second meeting in the coming days and it is proposed that they meet regularly. The outputs of these sub-groups will feed into the meetings of the Working Group.
The consultation process has commenced. Minister of State Murphy has had informal meetings with representatives from a number of key stakeholders including: Insurance Ireland, AA Ireland, the Irish Brokers Association, the Injuries Board, IBEC, FBD Insurance, and the Central Bank of Ireland.
The Working Group and the four sub-groups will also meet with the relevant stakeholders. At its meeting this week, the Working Group will meet with representatives from the Law Society, AA Ireland, the Irish Brokers Association and the Consumers Association of Ireland. In addition, submissions received from all interested parties will be considered as part of the process. Further consultation will take place through the sub-groups with key stakeholders specific to their work.
By the end of October, the Working Group will provide me with an update report which will set out the priority actions required. From November to December, the Working Group will develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, the Chair will be consulting regularly with Government colleagues.
While the Government cannot direct insurance companies on the pricing or provision of insurance products, it can identify measures that may, in the short, medium and longer term, lead to a better operating environment and a reduction in claim costs.
