Niamh Smyth
Ceist:88. Deputy Niamh Smyth asked the Minister for Finance his plans to assist persons faced with increases in the cost of motor insurance; and if he will make a statement on the matter. [11008/18]
Amharc ar fhreagraTuesday, 27 March 2018
Ceisteanna (88)
Freagraí scríofa
The Deputy should note that in my role as Minister for Finance I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank can interfere in the pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on the risks they are willing to accept.
However, it is acknowledged that pricing in the motor insurance sector has been subject to a lot of volatility in recent years, from a point where some premiums appeared to be priced at an unsustainably low level to the more recent experience of large increases.
Indeed, the problem of rising motor insurance premiums was the main impetus for the establishment of the Cost of Insurance Working Group. Its Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, set out within an Action Plan.
Work is ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies and there is a commitment within the Report that the Working Group will prepare quarterly updates on its progress. The fourth such update was published on 20 February and shows that of the 46 separate deadlines set during 2017 within the Action Plan, 39 have been met. Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”.
It should be noted that the most recent CSO data (for February 2018) indicates that private motor insurance premiums have decreased by 18.1% since peaking in July 2016. While the CSO statistics indicate a greater degree of stability on an overall basis, these figures represent a broad average and therefore I appreciate many people may still be seeing increases. However, I am hopeful that the improved stability in pricing will be maintained and that premiums should continue to fall from the very high levels of mid-2016.
Finally, I would recommend drivers who are quoted increased premiums to consult the Competition and Consumer Protection Commission website, which has an informative section regarding the purchase of car insurance generally. One of the key tips listed to help cut costs is to “shop around” and “always get quotes from several insurance providers when you need to get or renew insurance”.