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Motor Insurance Costs

Dáil Éireann Debate, Wednesday - 5 July 2017

Wednesday, 5 July 2017

Questions (31, 48, 68, 69)

Maureen O'Sullivan

Question:

31. Deputy Maureen O'Sullivan asked the Minister for Finance his views on the worsening situation regarding car insurance costs; and his further views on the fact that many persons are seeing little difference in premium quotes since the recommendations of the working group have been published or partly implemented. [31349/17]

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Martin Heydon

Question:

48. Deputy Martin Heydon asked the Minister for Finance the status of the implementation of the recommendations in the report on motor insurance published in January 2017 from the cost of insurance working group set up by his Department; and if he will make a statement on the matter. [31453/17]

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John Curran

Question:

68. Deputy John Curran asked the Minister for Finance the progress he is making on implementing the actions contained in the report on the cost of motor insurance; the effect this is having on motor insurance costs; and if he will make a statement on the matter. [31346/17]

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Robert Troy

Question:

69. Deputy Robert Troy asked the Minister for Finance the position regarding the working group's actions on the issue of motor insurance; and if he will make a statement on the matter. [31482/17]

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Written answers

I propose to take Questions Nos. 31, 48, 68 and 69 together.

The Cost of Insurance Working Group, chaired by former Minister of State Eoghan Murphy T.D., finalised its Report on the Cost of Motor Insurance in December 2016 and it was published on 10 January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are clearly set out in an Action Plan. 45 of these action points are due to be implemented by the end of this year with the remainder scheduled for completion before the conclusion of 2018.

There is a commitment within the Report that the Working Group will prepare quarterly updates on its progress and the first such update was published in early May.  The Department of Finance will publish the second quarterly update in the coming weeks.  This update will again show the progress to date on the overall implementation of the recommendations, with a particular focus on the 17 action points which were due for completion in the second quarter of 2017.

It should be noted that the most recent CSO data indicates that private car premiums have reduced by 8.5% year-on-year.  

I do, however, accept that while CSO statistics indicate a greater degree of stability on an overall basis, these figures only represent a broad average and there are many people who are still seeing increases.  I take the view that while the greater stability in pricing is a good thing, premiums are still at a very high level. 

However, I do firmly believe that the implementation of the recommendations of the Report on the Cost of Motor Insurance will make a difference to the pricing of insurance premiums over the next 18 months.  It is envisaged that the implementation of all the recommendations cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, will achieve the objective of delivering fairer premiums for consumers.  I also believe that the Setanta judgment, by finding that MIBI is not liable to meet third party claims, removes a major uncertainty from industry, which I would expect to be reflected in pricing in the short to medium term.

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