Seán Sherlock (Cork East, Labour) | Oireachtas source

I thank the witnesses for coming in. Their submissions have been very informative. I have a few interactive questions. The Minister of State, Deputy Eoghan Murphy, was before the committee yesterday and I am sure the witnesses have already read some of the transcripts. He said "the ability of the Government to influence insurance pricing is limited, as insurance companies are required by European law to price in accordance with risk". It is worth our while interrogating further the setting of the discount rate. The rate may be 2% or 3% but the insurance premiums have increased by multiples of that. I assume that is because of provisioning. It would be useful for people watching online if Mr. Faughnan could give them a better appreciation as to why there has been a loading on insurance premiums this year. I am fascinated by the fact that he says insurance companies are narrowing their footprint and cherry-picking customers. Mr. Moran has said that there has been no increase in the risk related to old drivers but they are being told when the go to renew their premiums that they carry a greater risk. I imagine the market is still lucrative so I do not see why they are narrowing their footprint. I imagine the risk is still covered to a large extent. Is it because the underwriters, of which globally there are a limited number working in the motor insurance sector, are deciding the Irish market is not lucrative enough? Are they saying that profit is the ultimate motive over and above that of risk? I would like a deeper understanding of why the witness feels there will be a further rise of 20% over the next two or three quarters.

Are the witnesses interacting with the Minister of State's working group? I get a sense from the Minister of State's intervention yesterday that while there have been meetings, the insurance industry is not really a stakeholder in the process but merely a contributor. The firms give information but are not influencing a potential outcome which would see the necessary reductions in premiums, as called for by Mr. Griffin, especially in the case of younger drivers and older drivers. We all have experience of this issue from our work in our constituencies, whether they be rural or urban. As public representatives, we have seen a massive increase in the cost of premiums. When we see increases of between 33% and 50% in the cost of premiums, we wonder if it is based on the profit motive or something else. Is it only about the book of quantum or the automatic number plate recognition, ANPR, or the discount rate? It seems to me there is something more to it than that. Is there another explanation of the discount rate?