Paddy Burke (Fine Gael) | Oireachtas source

On 20 April, the Minister for Finance identified a range of possible factors that contributed to the increase in the costs of motor insurance in Ireland in the past 12 months. Among the reasons noted by the Minister were the frequency and scale of claims, the cost of claims and the operation of the insurance market. The Minister noted an increase in the frequency of claims over the past year, which he advised was associated with improving economic conditions, and also referred to an increase in the number of large claims. Reference was also made to the increase in the jurisdiction of the Circuit Court since February 2014, which the Minister said may possibly lead to increased legal costs. The Minister for Finance, who has all of the information available to him from the Central Bank and so forth, said quite clearly on 20 April that an increase in legal costs could be the cause of the increase in the cost of motor insurance.