Dáil Éireann Debate, Thursday - 4 May 2017
89. Deputy Michael McGrath asked the Minister for Finance the position regarding recommendation 11 and action point 22 in the Report on the Cost of Motor Insurance; if the key aggregated metrics for a national claims database have been specified; the details of metrics used; the progress that has been made on establishing a claims information database; and if he will make a statement on the matter. [21370/17]
View answer90. Deputy Michael McGrath asked the Minister for Finance the position regarding recommendation 12 and action point 25 in the Report on the Cost of Motor Insurance; if a quarterly publication of key aggregated metrics on claims costs and trends within the market has been published; the details of that publication; and if he will make a statement on the matter. [21371/17]
View answerI propose to take Questions Nos. 89 and 90 together.
I propose to take PQ's 89 and 90 together which deal with Recommendation 11 (Establish a National Claims Information Database) and Recommendation 12 (Quarterly Publication of Key Aggregated Metrics, on Claims, Costs and Trends within the Market).
The recommendations in the Report on the Cost of Motor Insurance are being progressed in accordance with the Action Plan contained in the Report. The first quarterly progress update in respect of the implementation of the recommendations is now available on the Department of Finance website, under the Insurance Policy section.
This update shows the progress to date on the overall implementation of the Report, with a particular focus on action points which were due for completion in the first quarter of 2017.
A common theme that emerged from discussions with stakeholders during the deliberations of the Working Group was that an improvement in transparency, facilitated by additional collection and publication of data, was essential. In this regard, the Report on the Cost of Motor Insurance concluded that a national claims information database is needed for the motor insurance sector so that amongst other things we can see what claims are being made against property or for personal injuries, the legal and other costs that are being incurred, and the channel of resolution and what impact this has on the final settlement. In order to better understand how claims costs impact premiums, the Cost of Insurance Working Group decided that an incremental data gathering approach should be adopted to increase transparency and improve data availability across the insurance sector along the following lines:
1. the short-term publication on a quarterly basis, of a number of key aggregated claims-related metrics.
2. to be followed by the establishment of a National Claims Information Database which would facilitate a more in-depth annual claims’ trends analysis.
To that end, a data sub-group was established to commence examination of these issues. The sub-group is chaired by the Department of Finance, and includes membership from the Central Bank of Ireland, the Society of Actuaries, the Personal Injuries Assessment Board, the State Claims Agency and the Central Statistics Office, and it met seven times between January and March.
Because there is considerable overlap between recommendations 11 and 12, the data sub-group has structured its work in order to enable it to meet the deadlines identified in the report. In this context, its primary focus from the outset has been to identify the key aggregated metrics that can be obtained from the industry in the short term to allow for immediate publication on a quarterly basis from Q2 2017. In this regard, it was therefore decided to seek an update on the information provided by industry for the purpose of Section 7(4) of the Report on the Cost of Motor Insurance.
To facilitate the industry’s completion of this request, the data sub-group developed a template which issued to industry at the end of March, thus achieving action point 25 of the Report.
With regard to commencing the development of a national claims information database, the work and discussion around the identification of key aggregated metrics for immediate publication has assisted the data sub-group in considering the specification of the key aggregated metrics for the national claims information database. This work is progressing well. It should also be noted that concurrently the data sub-group is examining the legislative requirements to underpin the National Claims Information Database.
