Oireachtas Joint and Select Committees
Thursday, 15 September 2016
Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach
Rising Cost of Motor Insurance: Discussion (Resumed)
11:00 am
Mr. Fergal O'Leary:
As I mentioned earlier, motor insurance is the most switched product. At the other end are bank accounts and mortgages. Unfortunately, people have the most to save on their mortgage. The Department of Finance working group is considering a range of matters, and the Minister of State, Deputy Eoghan Murphy, was widely quoted in the paper. We heard through our parent Department, which is represented on the working group, that it is analysing the amount of paper involved, making it easier for people to switch. In the mortgage sector it is considering giving people longer to switch. At the moment we have between 15 and 30 days to renew motor insurance. If people had longer, would that incentivise them to switch? The prices at the moment are a great incentive for people to look around. I hope that when people do that they are rewarded.
I understand the working group is also considering discounts and loyalty bonuses. From a consumer perspective generally in terms of switching there is inertia but we need to make it as easy as possible for people to switch and to get any barrier lowered. Technology can do that. The more paper we have the harder it gets. It is often in the industry’s interest for no one to switch. There may be a role for the regulator to consider how easy it is, as it does with current accounts and mortgages.
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