Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on this pressing issue, which has clearly spiralled out of control and shows no sign of abating. It is extremely troubling to note that, on average, consumers have been faced with an increase of over 60% in the cost of their motor insurance since January 2014, with a 34% increase in the past 12 months alone. In many cases consumers have received renewal quotes that are multiples of their immediately preceding premiums. Naturally enough, people are finding themselves in a situation in which it is simply not possible for them to meet these extortionate prices.

The impact of these increases is being felt particularly badly in rural Ireland. Given the dispersed nature of our towns, villages and countryside, and given the inadequate public transport system, an ability to drive is crucial for so many people who are resident in these areas. Many people in rural areas who are reliant on private transport are effectively being forced off the road by unaffordable premiums. The high price of motor insurance is a burden on many families and, most worryingly of all, the dramatic increase in premiums will lead to a greater number of uninsured drivers on our roads. In addition, it would appear that our older people have borne the brunt of what can only be described as a totally ageist approach by motor insurance companies. I have been informed of a case in which an elderly woman’s car insurance premium was increased by €300 per annum. This is an outrageous additional demand on fixed or limited pensioners' incomes. Older people are being viewed as a liability and a soft touch by greedy insurance companies. This is an absolute disgrace. This abuse must be addressed as a matter of urgency. It would appear that the insurance industry is willing to take no responsibility for these outrageous premiums. Instead, the industry has sought to peddle a view that bigger claims payouts, fraud, regulatory costs, etc., are to blame.

Correspondence received from the Central Bank by my colleague Deputy Pearse Doherty pointed to the real reason behind the jumps in premiums: a long-term unsustainable way of doing business. A deeper look at the business model underpinning the insurance industry in Ireland is required. In its amendment to the motion before the House, Sinn Féin has outlined several important and practical additional steps that need to be incorporated in the overall consideration. I strongly urge Members to recognise that these are not only practical but necessary changes, and I join with my colleagues Deputies Doherty and Ó Laoghaire in calling on all Deputies to support this amended version of the motion.

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