Niamh Smyth
Question:50. Deputy Niamh Smyth asked the Minister for Finance the steps he is taking to assist persons faced with increases in the cost of motor insurance; and if he will make a statement on the matter. [31249/17]
View answerWednesday, 5 July 2017
Questions (50)
Written answers
The former Minister for Finance, Michael Noonan T.D., established the Cost of Insurance Working Group in 2016, in consultation with the Central Bank and other Departments and Agencies.
The initial focus of the Working Group was the issue of rising motor insurance and its Report on the Cost of Motor Insurance was published in 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 next couple of 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 are 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 that 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 believe that the implementation of the Report on the Cost of Motor Insurance will make a difference to the pricing of insurance premiums over the next 18 months. 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.