Carol Nolan (Offaly, Sinn Fein) | Oireachtas source

Insurance is a huge issue. In my constituency of Offaly and North Tipperary not alone does it affect young drivers in rural areas but also elderly people who for some strange reason receive huge quotes. This needs to be urgently addressed. In rural areas such as my constituency there is no adequate or proper transport system.

Over the past year we have witnessed insurance companies holding the people of this country to ransom through the costs associated with insuring road vehicles. It is evident that these insurance companies have profiteered on the back of staggering increases in motor insurance, as they know it is a necessity for most working people around the country. The insurance industry and others have been quick out of the traps to try to explain this huge increase. They blame claims, payouts, fraud, regulatory costs and so on. They seem to blame everyone but take no responsibility themselves. I am not convinced by their arguments and frankly neither are the Irish people.

As Deputy Martin Ferris said, this needs to be addressed. Deputy Pearse Doherty also raised concern over this issue. It is time that serious and fundamental questions were asked about the business model used by insurance companies in this State. Therefore, it is time we took a critical analysis of the operating model underpinning the insurance industry in Ireland to see if a long-term unsustainable way of doing business is the real reason behind the increases in premiums.

I believe an investigation will reveal as much. Correspondence received by Deputy Doherty from the Central Bank states:

Recent reversals in investment markets have generated investment losses that are a drag on profitability. In the view of the Central Bank, the recent premium increases will serve to restore core underwriting profitability and to secure the financial position of the firms concerned for the longer term.

This points to insurance companies punishing customers because profitability has dried up from their other sources of income. It is completely unacceptable for insurance companies to apply punitive levies to drivers because they were operating in an unsustainable manner and are now feeling the repercussions of their actions.

The insurance increases these companies are imposing on people are pushing the owning and running of motor vehicles out of the reach of many ordinary people. This, in turn, affects people's ability to travel to and from work and it is a particular issue for people in rural areas, and for young people and older people who are also being quoted extortionate rates.

It is our duty, as elected representatives of the people, to address all of these concerns. Without doubt this is one of the biggest concerns of the people of my constituency in Offaly and north Tipperary. The ordinary people of Ireland do not have the money to cover these costs which are having a severe negative impact on their lives professionally and personally. I call on the Minister to meet the main actors in the insurance industry as soon as possible to address this because the current situation is totally unacceptable.

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