Alan Farrell (Dublin Fingal, Fine Gael) | Oireachtas source

That was terribly efficient; it was like a nightclub at 2 a.m. for a moment. I thank the Ceann Comhairle for his forbearance on this Adjournment matter, which was tabled last week but directed to the incorrect Department. I thank the Minister of State, Deputy Eoghan Murphy, for taking the issue and I congratulate him on his appointment. The purpose of this Adjournment debate on insurance premiums is primarily to highlight something which has been in the public domain for several months following annual increases in insurance premiums across the board. The CSO's consumer price index for April of this year shows that, across many different sectors, the cost of insurance premiums has increased in the past month and the past year. Nowhere is this increase more evident than in the motor car insurance sector, where in the 12 months up to April 2016, there was a 34.5% increase. In fact, there was an increase of 3.4% in insurance relating to motor cars in the month between March and April 2016 alone. Many questions must be asked of the insurance industry as to how it can justify such an increase in one year alone. It is difficult to believe it is plausible that such an increase benefits the consumer impacted, and for this reason I believe it is warranted that the Government establish an investigation, primarily through the Department of Finance, into the insurance industry in this regard.

While the motor insurance sector has seen the most significant increases in the past year, it must be noted that, from what I could determine, all insurance categories, apart from health and travel insurance, increased. Health insurance decreased by 0.5%, which is negligible, and travel insurance decreased by almost 6%. Insurance connected with the dwelling rose by 10%, motor car insurance increased by 34.5% and motor cycle insurance increased by 6%. On the basis of the increase in insurance costs, it would be wholly justified for the Government to establish an investigation into the insurance sector. This could be done by the Department of Finance, the Department of Jobs, Enterprise and Innovation or the Competition and Consumer Protection Commission, and I will leave this matter for the Minister of State to determine. We must ensure that customers get the best value for money while receiving comprehensive protection.

The question must be asked as to whether insurance companies are operating like a cartel. For example, in 2015, Aviva Ireland had its best performance in five years, according to its chief executive. As reported in its financial results, Aviva Ireland's operating profit, excluding non-insurance activity, stood at €91.2 million. This is an increase of 32% on the €69 million operating profit which existed in 2014. In fact, Aviva acknowledged that its general insurance business gross written premium grew by €48 million year on year while its customer numbers grew by 6%. This is not to draw attention to one company specifically, but merely to use it as an example. Another example is RSA, which RTE reported reduced its operating loss in its Irish operations from £97 million in 2014 to £26 million in 2015. This morning, I received a particular example from a constituent in Swords. A 37 year old male with eight years no claims bonus and three penalty points received a renewal quote from FBD for €445 in 2015, and his insurance renewal quote this year was 90% higher, at €845. Since that correspondence, the company has offered an intermediary level of €745, which is €100 less. This is a paltry gesture given the 90% increase.

David Barniville, senior counsel and chairman of the Bar Council, wrote an article in The Irish Timeslast Friday. Ironically, if the Adjournment debate had been taken last week it would have informed the article a little more. He highlighted the issue I have just outlined with regard to legal costs. I have done a great deal of research, which I will happily give to the Minister of State, which indicates legal costs have increased by only 1%, so the justification the insurance industry is giving is completely erroneous, with 35% in one example.

The Government levy increases premiums and I accept there are other capitalisation issues, but the Book of Quantum of InjuriesBoard.ie, which was established to reduce costs for the insurance sector and the end user has not been updated in almost a decade. It is in the process of doing so, which is a welcome step. The problem is the insurance industry will not share information with the injuries board and it cannot make a determination which will ultimately lower costs.

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