Dáil Éireann Debate, Tuesday - 22 November 2016
165. Deputy Billy Kelleher asked the Minister for Finance the actions he is taking to immediately curb the escalating car insurance costs for motorists; and if he will make a statement on the matter. [36112/16]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
However, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors which contribute to higher costs. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. The initial focus of the Working Group is on the factors that are contributing to the cost and availability of motor insurance and identifying what short-term, medium-term and long-term measures can be introduced to help consumers and businesses. A broad range of issues affecting the cost and availability of motor insurance are being examined by the Working Group.
The Cost of Insurance Working Group has met ten times to date and will continue to meet until the end of the year. The work is being progressed through four subgroups. These subgroups have been meeting on a weekly basis since their establishment on 1 September 2016.
The Working Group and the four subgroups have engaged in a consultation process and has met with and heard from a variety of relevant stakeholders including: Insurance Ireland, individual insurance companies, the Irish Brokers Association, AA Ireland, the Consumers Association of Ireland, the Law Society, the Bar Council, Irish Road Haulage Association, the Car Rental Council, the National Transport Authority and Tiomanai Tacsai na hEireann. I have also invited submissions to the Working Group from all interested parties to insurance@finance.gov.ie.
In addition, the Working Group has engaged with relevant insurance companies as part of this consultation process. The views and submissions of insurance companies, and all those from interested parties, are being considered as part of the ongoing work of the Working Group.
The Working Group provided me with an initial set of emerging recommendations at the end of October 2016. Since then, the Working Group has been working to finalise their Report and to develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions. The report and action plan will detail any legislative or regulatory changes that may be required and will include a detailed timeline for implementation.
From the emerging recommendations presented and the consultations carried out since, it is likely that the report will address nine key areas, with in the region of 40 recommendations in total.
