Dáil Éireann Debate, Thursday - 18 May 2017
94. Deputy Bernard J. Durkan asked the Minister for Finance the benefits of the review of the motor insurance sector for motorists in terms of reduced premiums; and if he will make a statement on the matter. [23870/17]
Amharc ar fhreagraI established the Cost of Insurance Working Group, chaired by Minister of State, Eoghan Murphy T.D in July 2016. This Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short, medium and long-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. The initial focus of the Working Group was the issue of rising motor insurance premiums and a broad range of issues affecting the cost of motor insurance were examined.
The Working Group finalised its Report on the Cost of Motor Insurance in December 2016 and it was published on 10 January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are set out in an Action Plan.
Work is ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies with the 71 action points due to be implemented by the end of 2018 and 45 scheduled for completion before the conclusion of this year. There is a commitment within the Report that the Working Group will prepare quarterly reports on its progress and the first such report is available on the Department’s website at: http://www.finance.gov.ie/sites/default/files/170503%20Insurance%20Q2%202017%20Progress%20Report%20Q1%20Focus.pdf
This update reports how the implementation of the recommendations is progressing, with a particular focus on action points which were due for completion during the first quarter. Completed actions include the establishment of the Personal Injuries Commission and the issuing of a key aggregated metrics template to insurance undertakings for completion.
There is no simple or single solution to the problem of increasing insurance prices. However, it is envisaged that the implementation of all the recommendations cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, should achieve the objective of delivering fairer premiums for consumers.
It should be noted that the latest data from the Central Statistics Office indicates that there has been no month-on-month increase in the cost of motor insurance during the first four months of this year, while there was a decrease of 2.6% in April 2017 compared to the same month last year.
