Dáil Éireann Debate, Wednesday - 18 January 2023
375. Deputy Pearse Doherty asked the Minister for Finance the estimated cost to the Central Bank of the National Claims Information Database; the expected date of the introduction of the levy as a required reimbursement mechanism under the Central Bank (National Information Claims Database) Act 2018; and the expected annual revenue that it will raise. [2171/23]
View answerA transparent and evidence-based approach to policymaking remains a key focus for the Government’s ongoing insurance reform agenda. Accordingly, the introduction of the National Claims Information Database (NCID) within the Central Bank of Ireland (CBI) is a key-step change in this regard.
The NCID reports provide wide range of official data on private motor, employers’ liability, public liability and commercial property insurance. Indeed, Ireland is unique in the EU in having this level of quantitative insight, allowing us to analyse and understand industry-level developments.
I would also note that the NCID has been well received by all stakeholders, as well as all sides of the House. It represents a valuable resource and therefore it is important that it be sufficiently funded to ensure it continues to perform this important function. In this regard, the fourth NCID Private Motor Report, published in November 2022, contained some initial insights as to the impact of the Personal Injuries Guidelines introduced in 2021. The NCID continues to be enhanced, and from this year will begin to publish some key data on a more regular basis.
The NCID is underpinned by the Central Bank (National Claims Information Database) Act 2018. While the CBI is responsible for the NCID, the European Central Bank’s Opinion (CON/2018/43) on this legislation, noted that this is not deemed as a “central bank task” under European law. Therefore, the CBI is not permitted to pay for the cost of establishing and running the NCID from its own resources. This provision is designed to ensure Member State governments do not outsource “non-bank” activities to their respective central banks and in turn leave them with the associated costs.
Consequently, Section 11 of the 2018 Act requires the CBI to make Regulations to recoup the cost of the NCID by prescribing levies to be paid by insurance undertakings. These levies should not be directly charged to consumers. This provision has been in place since 2018 when passed by the Oireachtas, with industry having been aware of it.
The CBI is currently working on a regulation to establish a levy which will retrospectively recoup the Bank's costs in operating the NCID. I understand that the CBI expects that the regulation will be enacted in H1 2023, and that it will provide details of the total costs of the levy per year and information on how the levy is calculated. The money raised will cover, the set-up and design cost of both NCID databases. Furthermore, I understand that it is proposed that the ongoing running cost of the NCID publications will henceforth be met on an annual basis.
At this point, I understand preparations are proceeding through the Central Bank’s internal approval processes. Accordingly, I am unable to comment any further until briefed on the outcome from the work done by the Central Bank.
