Dáil Éireann Debate, Tuesday - 28 February 2017
50. Deputy Joan Burton asked the Minister for Finance his plans to deter further increases in the cost of motor insurance; when he plans to implement such proposals; and if he will make a statement on the matter. [9985/17]
View answerThe Cost of Insurance Working Group, chaired by the Minister of State Eoghan Murphy, was established to examine the factors contributing to the increasing cost of insurance and to identify what measures could be introduced to help deter further increases for consumers and businesses. The initial focus of the Working Group was on rising motor insurance premiums and in this regard the Report on the Cost of Motor Insurance was published on January 10, 2017. The Report contains 33 recommendations and 71 actions including actions to:
- address the lack of transparency in the claims environment, through the establishment of a national claims information database which will be located in the Central Bank;
- provide enhanced guidance in how to determine compensation for personal injuries claims, through the establishment of a Personal Injuries Commission;
- address the increasing level of uninsured driving, through the establishment of a fully functioning database which will allow the Gardaí to check insurance compliance through the use of technology such as Automatic Number Plate Recognition; and
- address the issue of suspected fraud, through the establishment of a database that will be funded by industry but held by an independent body and that will take into account data protection concerns.
Work on the implementation of these recommendations has already commenced and I am confident that the 71 actions will be implemented by the end of 2018, with 45 due for completion this year.
While there is no simple solution to reduce the cost of motor insurance, I believe that with cooperation and commitment between all parties, fairer premiums for consumers can be delivered without unnecessary delay. This in turn should lead to greater stability in the pricing of motor insurance and should help prevent the volatility that we have seen in the market in the past. It should also better facilitate new entrants to the market. It should be noted that CSO statistics show that there was no month on month change in the cost of motor insurance between December 2016 and January 2017.
As part of its second phase, the Working Group is now examining issues related to Employer Liability and Public Liability insurance including the impact of the cost of insurance on the competitiveness of particular business sectors. The Working Group will continue to meet on a regular basis in 2017.
