Oireachtas Joint and Select Committees

Wednesday, 7 September 2016

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Rising Cost of Motor Insurance: Minister of State

11:00 am

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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Exactly. They will be departmental officials but the chairs have been asked to invite others into the subgroups if they think it could be of use to the work they are doing.

The second subgroup will consider improved data availability, will be chaired by officials from the State Claims Agency and the Central Bank will assist in chairing that subgroup. This subgroup will give consideration to identifying the data requirements to develop an understanding of the reasons for the increase in insurance premiums, identifying what data are and are not available and making recommendations on data transparency and information sharing. The second subgroup will work quite closely with the third subgroup, which will examine the cost of claims. That subgroup will be chaired by officials from the Department of Jobs, Enterprise and Innovation and will be vice-chaired by officials from the Department of Justice and Equality. This subgroup will give consideration to analysis of the personal injuries claims environment and the various claims resolution channels such as court awards, the Injuries Board and settlements made by insurers, including how this has evolved. It also will consider the effects of legal costs and litigation processes on insurance costs and will identify and review other jurisdictions that offer possible solutions to reduce premiums in the Irish market and will make recommendations regarding the cost of claims.

The final subgroup will consider other policy issues and will be chaired by officials from the Department of Finance. Officials from the Departments of Transport, Tourism and Sport and Justice and Equality will assist in vice-chairing that subgroup. Its work will include an analysis of the levels of fraudulent and exaggerated claims, uninsured drivers, breaches of road traffic legislation and fatalities and injuries relating to motor accidents, including the impact of these on premiums and claims.

It also will make recommendations to reduce the impact of these factors on claims, the cost of claims and the cost of premiums, as well as recommendations on the use of new technologies. The subgroups have been mandated to expand their work as they require and I am working in close liaison with the chairs and vice chairs of the subgroups in order to be aware of exactly what they are doing and how they believe their work is progressing to ensure that when we meet as a plenary every two to three weeks, I know exactly what is coming from the subgroups, the plenary meetings can be managed effectively and progress can be continued on the work to the timeline I identified earlier.