Motor Insurance Costs

Dáil Éireann Debate, Tuesday - 30 January 2018

Tuesday, 30 January 2018

Questions (82, 93, 108)

Aindrias Moynihan

Question:

82. Deputy Aindrias Moynihan asked the Minister for Finance the status of the implementation of the report on the cost of insurance working group; and if he will make a statement on the matter. [4299/18]

Bobby Aylward

Question:

93. Deputy Bobby Aylward asked the Minister for Finance the status of the implementation of the recommendations made in the report by his Department's working group on reducing the cost of motor insurance; the number of recommendations that have not been implemented to date; the reason for same; and if he will make a statement on the matter. [3998/18]

Martin Heydon

Question:

108. Deputy Martin Heydon asked the Minister for Finance the status of the progress of implementation of the recommendations from the report on the cost of motor insurance [4298/18]

Written answers

Minister for Finance

I propose to take Questions Nos. 82, 93 and 108 together.

The Cost of Insurance Working Group’s Report on the Cost of Motor Insurance was published in January 2017 and makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are set out in an Action Plan. 

In line with the commitment to publish quarterly update reports on the implementation of the recommendations of the Report on the Cost of Motor Insurance, the Working Group has published three update reports to date, most recently on 23 October 2017.  I am pleased to note that of the 32 actions due for completion before the end of the third quarter of 2017, 29 have been completed.  Substantial work has also taken place in respect of the nine action points categorised as “ongoing”.

Of the three actions which have not been fully completed to date, two of them relate to the same recommendation, which requires the approval of the Minister for Justice and Equality and the Garda Commissioner for potentially far-reaching co-operative mechanisms between Insurance Ireland and An Garda Síochána to be formalised.  The other outstanding action is contingent on the establishment of the new Office of the Legal Costs Adjudicators, now scheduled for later this year.

The fourth quarterly update will be published within the next few weeks and will focus on the 14 actions which were due for completion in the final quarter of 2017.  All of the remaining actions are scheduled to be completed before the end of 2018.

It should be noted that the most recent CSO/CPI data (for December 2017) indicates that private motor insurance premiums have decreased by 16.3% since peaking in July 2016.  While it is accepted that premiums are still at a very high level for many drivers, such statistics indicate at least a greater degree of stability in the market on an overall basis.

I believe that the ongoing implementation of the recommendations will continue to make a difference to the pricing of insurance premiums over the next 12 or so 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.