Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

On a personal note, I wish to thank Deputies for their good wishes.

The discussions that have taken place regarding motor insurance are timely and, in this regard, Deputy Michael McGrath's motion is very welcome. I also welcomed this opportunity to hear contributions from other Members both yesterday and today. It is clear that the rising cost of motor insurance is a shared concern across the House.

As outlined yesterday by the Minister for Finance, the Government is not opposed to the Private Members' motion calling for a task force on motor insurance matters, which has been tabled for discussion both yesterday and today.

The Minister for Finance has highlighted that he has already established a task force in his Department to carry out a review of policy in the insurance sector. This project will examine all of the issues relating to insurance policy and will include all of the matters raised in this discussion. One of the major issues to be addressed by the task force is an examination of the factors which have led to the significant increase in motor insurance costs in recent years and, of course, to recommend what steps can be taken to influence the situation.

Neither is the Government opposed to the amendment to the Private Members' motion. The Government would welcome any discussions on the issues of insurance and the insurance industry in the new Oireachtas finance committee when it is formed, and will look at any legislative proposals that may arise from those discussions.

The Department of Finance has a task force in place which is addressing the issues raised. Publication of the Department of Finance's report will be considered as soon as the Government has an opportunity to review it. As the Minister outlined in his speech yesterday, the review of insurance policy will examine the issue of data and the need for more detailed information to be available regarding claims costs and insurance policy data.

A Bill is currently being drafted on the merger of the Financial Services Ombudsman and the Pension Ombudsman. The points raised in the amendment on increasing the power of the Financial Services Ombudsman could be examined under the pre-legislative scrutiny process for that Bill.

With regard to the Central Bank, it should be remembered that the Oireachtas has the power under section 33AM of the Central Bank Act 1942 to call certain staff of the Central Bank, including the Governor and the head of financial regulation, to appear before a joint committee of the Oireachtas. Those called shall provide that committee with such information as it requires, subject to certain conditions. This provision was introduced under the Central Bank Reform Act 2010.

On the call for a review of the Central Bank of Ireland regulation, it should be noted that the IMF has recently undertaken a detailed review of the Central Bank as part of its financial sector assessment programme. This report examined all the supervisory areas of the bank, including insurance supervision, and it will be published over the summer months.

A number of additional issues were raised in the House yesterday during the Members' contributions. They span the work of several Departments and offices, and they will also be addressed as part of the current review. These include the lack of a link between the national car test and the availability of insurance; insurance costs for the young and those over 65; the case for rural dwellers with no public transport to have car insurance at a reasonable cost; the issue of returning immigrants having difficulty obtaining car insurance; and the cost of insurance to taxi drivers, hackneys and hauliers.

The Department of Finance is aware that certain groups are particularly affected by the increase in insurance costs. The Department will undertake an examination of the underlying issues as part of its review.

The Department of Finance task force will report to the Minister for Finance shortly on the first phase of its work dealing with the insurance compensation framework. This work is focused on developing an insurance compensation framework that will provide clarity and certainty regarding the insurance compensation framework in Ireland. This work is being done jointly with the Department of Transport, Tourism and Sport.

The work of the task force will be completed over the coming months. The outcome of the review will be to recommend measures to improve the functioning and regulation of the insurance sector. This work on insurance costs fits with the programme for a partnership Government commitment to a fairer society in Ireland.

I welcome the Minister for Jobs, Enterprise and Innovation's review of the Injuries Board legislation aimed at strengthening the legislative framework in terms of operational issues. I also welcome the review of the Injuries Board's book of quantum, which is expected as soon as possible.

The cost of meeting expected claims is one of the main drivers of insurance costs. As the Minister for Finance stated yesterday, the Government welcomes proposals to reduce the uncertainty and volatility of the claims environment in Ireland. This core issue is being examined by the Department's review of insurance policy.

The Government will await the completion in the coming months of the existing Department of Finance insurance task force's work. The Government will then consider what further longer-term options may be required, including the possible establishment of a broader structured task force on motor insurance, as outlined in the motion.

I thank the House for the opportunity to debate this important issue concerning the rising cost of motor insurance.

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