Róisín Shortall
Question:347. Deputy Róisín Shortall asked the Minister for Finance the status of each of the working streams in respect of addressing the cost of insurance. [26339/16]
View answerFriday, 16 September 2016
Questions (347)
Written answers
The 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. 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 commenced. The sub-groups will be holding their second meeting in the coming days and it is expected that they meet regularly. The outputs of these sub-groups will feed into the meetings of the Working Group which will meet every 2-3 weeks.
Sub-group 1: Understanding motor insurance market
This sub-group met on Thursday 8 September to finalise a work programme which it has commenced working on. An update was provided to Minister of State Murphy at a meeting of Chairs and Vice Chairs on Friday 9 September.
A further sub-group meeting will be held on 15 or 16 September. It is proposed to meet on weekly basis thereafter.
The sub-group will meet relevant stakeholders. Contacts are ongoing in relation to arranging sub-group engagement with relevant stakeholder groups such as the Irish Road Haulage Association and the Irish Taxi Drivers' Federation.
Sub-group 2: Improved data availability
Sub-group 2 met on Friday 9 September and will hold its next meeting on Tuesday 13 September. An update was provided to Minister of State Murphy at a meeting of Chairs and Vice Chairs on Friday 9 September.
In addition, a member of sub-group 3 will attend certain sub-group 2 meetings, and vice versa, to ensure proper coordination across the work of the two sub-groups.
A CSO official will be invited to participate in and contribute to this sub-group's work.
Sub-group 3: Cost of Claims
In recognition of the overlapping factors which will be examined by sub-group 2 (improved data availability) and sub-group 3, it has been agreed that a member of sub-group 2 will attend meetings of sub-group 3 and vice versa.
Sub-group 3 held its first meeting in the Department of Jobs, Enterprise and Innovation on Tuesday 6 September. At this meeting, an outline structure table of contents for the chapter on 'Cost of Claims' was agreed following consultation amongst all members. Drafting tasks were also allocated.
The preliminary views of sub-group 3 were relayed to Minister of State Murphy at his meeting with Chairs and Vice Chairs of all sub-groups on Friday 9 September.
Sub-group 3 will proactively engage with stakeholders when appropriate at both steering group and sub-group level.
Sub-group 4: Other public policy issues
This group will examine, amongst other things, insurance fraud and uninsured drivers.
This group met on Tuesday 6 September where it agreed its broad work plan. As part of this, it will meet with members of Insurance Ireland's Fraud Committee and the Motor Insurers' Bureau of Ireland's Committee at its next meeting on 14 September. It is proposed to meet on weekly basis thereafter.
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 put in place an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, Minister of State Murphy will be consulting regularly with Government colleagues.