Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

I am pleased the House is having this debate on the important issue of insurance costs. CSO inflation data indicates insurance prices have increased by 55% since 2011. This is well in excess of European Union trends and it is vital for our consumers and enterprise base that Ireland maintains its price competitiveness to continue attracting inward investment and supporting job creation.

Among the reasons cited by the insurance sector for the increase in premiums are increases in claims volumes and the cost of settling claims. The data available to me through the Personal Injuries Assessment Board, PIAB, does not support the sector's claims on the volume and cost of settling claims. Estimates indicate that 70% of cases are now either resolved through the PIAB or settled directly between parties. The statistics for the average compensation awards by the PIAB and the acceptance rate of awards are broadly consistent. They do not reflect what some are saying about increased levels of awards. The existence of the board's model has facilitated the high volumes of cases that settle without the need for any litigation. The awards that are rejected may serve to facilitate a quick settlement, perhaps with some legal costs being paid. There are a number of personal injury cases settled outside the PIAB and the court processes, so they must be settled by the insurance companies.

Greater availability of data from the insurance companies is required for a proper understanding and greater transparency of what is going on in the entire claims market. In June 2014, my predecessor as Minister, Deputy Bruton, commenced a public consultation on the operation and implementation of the PIAB Acts 2003 and 2007 with a view to identifying any areas relating to the scope, powers or operation of the legislation that might require change. My Department is currently reviewing the submissions received and I hope to seek Government approval to draft a Bill later this year. My Department will continue to work with the Department of Finance in its review of the insurance sector.

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