Dáil Éireann Debate, Friday - 16 September 2016
203. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the commencement date and timeframe for reporting, membership, terms of reference and consultative plans of the review body established to investigate and inquire into the motor insurance industry and specifically the unprecedented and extraordinary increases recorded in motor insurance costs in recent times; and if he will make a statement on the matter. [25600/16]
Amharc ar fhreagraThe Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy TD, is undertaking a review of the factors which are influencing the increased cost of motor insurance.
The Working Group brings together all the relevant Departments and Offices involved with the process. Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.
Membership of the Working Group comprises representatives from the Department of Finance, the Department of Jobs, Enterprise and Innovation, the Department of Justice and Equality, the Department of Transport, Tourism and Sport, the Central Bank of Ireland, the State Claims Agency and the Personal Injuries Assessment Board.
The core areas to be examined by the Working Group in this first phase are:
- The motor insurance sector generally, at present and in recent years
- The effects of legal costs and litigation processes on insurance costs
- The current claims compensation arrangements and the cost of claims
- Insurance data and information
- The impact of accident rates
- The impact of unlawful activity on the insurance sector, and
- Other market issues
Because the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, Minister of State Eoghan Murphy has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has already commenced. The sub-groups will be holding their second meetings in the coming days and it is proposed that they meet regularly. The outputs of these sub-groups will feed into the meetings of the Working Group. As well as the organisations represented at Working Group level, the sub-groups also include representatives from An Garda Síochána, the Road Safety Authority and the National Roads Authority.
The consultation process has commenced. Minister of State Murphy has had informal meetings with representatives from a number of key stakeholders including: Insurance Ireland, AA Ireland, the Irish Brokers Association, the Personal Injuries Assessment Board, IBEC, FBD Insurance, and the Central Bank of Ireland.
The Working Group and the four sub-groups will also meet with the relevant stakeholders. At its meeting this week, the Working Group will meet with representatives from the Law Society, AA Ireland, the Irish Brokers Association and the Consumers Association of Ireland. In addition, submissions received from all interested parties will be considered as part of the process. Further consultation will take place through the sub-groups with key stakeholders specific to their work.
By the end of October, the Working Group will provide me with an update report which will set out the priority actions required. From November to December, the Working Group will develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, the Chair will be consulting regularly with Government colleagues.
