Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for his reply. These are more than reports of increases in motor insurance premiums - over the last 12 months or so, motor insurance premiums have increased by up to 30%. The industry predicts that over the course of 2016, increases will be of the order of 25%. Somebody who paid a premium of €400 in 2014 will probably pay €650 to €700 after this year.

That is simply not sustainable and the evidence suggests that younger drivers and people driving older vehicles, in particular, are being hit with the highest increases. We have been here before. The Motor Insurance Advisory Board, which was established in 1998 and first reported in 2002, made a series of recommendations which, when implemented, made a discernible difference to the cost of motor insurance premiums. There is no transparency in the sector. Seven out of every ten claims are settled out of court by insurance companies, with no register or evidence as to consistency with regard to the settlement of those claims. I welcome the fact that departmental officials will examine the sector but I ask the Minister to go further and to formally re-establish the aforementioned board.

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