Dáil Éireann Debate, Tuesday - 22 May 2018
149. Deputy Michael McGrath asked the Minister for Finance if he is satisfied that recommendation No. 10 of the report on the cost of motor insurance has been completed; the tangible steps which have been taken to address the issue of insurance for small public service vehicles, including insurance for taxis; and if he will make a statement on the matter. [22345/18]
Amharc ar fhreagraAt the outset the Deputy should note that the Cost of Insurance Working Group’s starting position on insurance for small public service vehicles is that it was not possible for it to make a recommendation on pricing as this is primarily a commercial matter for insurers. It did however recognise that this sector serves a social as well as an economic purpose, particularly in rural areas where public transport is less readily available. This position was acknowledged by the inclusion of Recommendation 10 in the Report of the Cost of Insurance Working Group on the Cost of Motor Insurance. This recommended that the Advisory Committee on Small Public Service Vehicles should enter regular discussions with Insurance Ireland to explore solutions for drivers in the sector.
The Working Group’s Fifth Quarterly Progress Update was published on 11 May 2018: http://www.finance.gov.ie/wp-content/uploads/2018/05/5th-Progress-Update-Q1-2018-Focus.pdf. That Report outlines the implementation of this recommendation.
In summary, Insurance Ireland met with the Advisory Committee on Small Public Service Vehicles, commonly known as the Taxi Advisory Committee (TAC), on 22 May 2017. The TAC submitted the required report in relation to this meeting on 21 June 2017 to the Minister for Transport, Tourism and Sport. To date, no further meetings have taken place between the TAC and Insurance Ireland. However, the TAC has advised my officials that it is keeping itself informed of developments in the area, particularly through the industry representatives on the Committee, and future meetings with Insurance Ireland are a part of the TAC strategy. Recommendation 10 has been completed in the sense that the TAC has reported to the Minister for Transport. Notwithstanding this, my view would be that work needs to continue on this general issue. Therefore, I look forward to further engagements between the TAC and the insurance industry.
I would add that, notwithstanding the role of the TAC, the issues raised by the taxi sector were in the main similar to those affecting consumers generally, notwithstanding that there are risks that are specific to the sector. While there is no silver bullet to reduce the cost of insurance, I believe that cooperation and commitment between all parties can deliver fairer premiums for consumers, including taxi drivers. I note that the most recent CSO data (for April 2018) indicates that private motor insurance premiums have decreased by 19% since peaking in July 2016. While these statistics are not directly relevant to commercial vehicles, I do believe they signal greater stability in pricing on an overall basis and I am hopeful that the general downward direction in pricing will continue.
I also believe that the work of the Cost of Insurance Group should better facilitate potential new entrants to the market. In this regard, I have been informed by my officials that Insurance Ireland has stated that there has been some increase in market capacity in relation to the provision of motor insurance for taxi drivers recently.
