Frank O'Rourke (Kildare North, Fianna Fail) | Oireachtas source

I thank the witnesses for their presentations. Apologies for having to leave earlier. I was attending a meeting of the Joint Committee on European Union Affairs.

I suppose we all are here having this discussion for the same reason. We all share the view that there is no justification, at which anybody can arrive, for the current premium increases or for the discrimination in respect of younger and older people, in particular. I would argue it is happening across all spectrums. That is what I am picking up personally and from constituents.

While Mr. Faughnan raised the issue about the book of quantum, the database, etc., I accept that we should be doing everything we can to ensure that premiums are brought back in line with what is affordable and acceptable. However, on the issues Mr. Faughnan and his colleagues raised that need to be put in place and should be sharpened up, I would argue that such might have been the case anyway going back over the last number of years. It is not as if we have just said there is no book of quantum or database this year but there was two years ago. I put it to Mr. Faughnan that the issues that need to be put right, sharpened up or brought into focus have probably existed for quite some time. There is no justification for the premiums escalating at the rate they are. Collectively, we should be doing everything we can to ensure all the measures needed are taken so that premiums are regulated. However, what we need to put in place today was needed for some time but it is only in recent years that premiums have escalated out of control.

The increase in premiums is over 40% in some cases. Nothing has changed in my personal circumstances, of which I am aware, but my premium has increased by 40%. A lady with a full licence in her early 30s who came to my office had to drop her insurance for the past two years as she had no work. She went to get a quote two months ago and was quoted €3,200 for driving an eight year old Mini. Not to discriminate against the Mini - it is not a flash car - but it is not a BMW or a Merc. It is completely unacceptable.

I could understand if one's premium was more expensive than that of anyone in this room because one might have many penalty points, a previous conviction or whatever.

If premiums were higher for individual policy holders based on their individual circumstances, we would not be having this debate because the increase would be related to a particular incident or issue, but this is widespread throughout all age groups in society irrespective of one's history or situation. It is absolutely unacceptable. The people spoken about by Mr. Griffin and Mr. Moran are now socially vulnerable, particularly the elderly on minimum pensions who cannot afford the increase. As a result they are becoming socially excluded. Young people feel victimised, leading to all types of social issues and this is a problem. Shopping around is not an option. I have shopped around and it is like a cartel. A policy will vary by only €50 or €60, if at all. There is no competition. It seems a decision was made - I am not saying this is the case - to go high.

I ask Mr. Faughnan to comment on the following point. My information may not be accurate but I understand claims in 2011 were €1.5 billion and claims in 2014 dropped to €1.01 billion, but this is being used as an excuse for an increase in premiums, which is unacceptable. Approximately two months ago, along with my colleagues I attended the launch by Deputy McGrath of his proposal to deal with this issue. He advocated the return of the motor insurance advisory board. When it was in place it managed and regulated premiums pretty well, bar cases with individual circumstances. Should we focus on reintroducing this? It went out of play in 2013. Should we focus on putting it back in play? Deputy McGrath is very focused on this. It might assist with the current issue, which is very much out of control.