Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I thank Deputy Mattie McGrath for raising this very important issue. I am glad he did not use that language because I would be very sensitive towards any language like that.

Introducing measures to address the rising cost of motor insurance is a high priority for Government. The working group on the cost of insurance, chaired by the Minister of State, Deputy Eoghan Murphy, is undertaking a review of the factors which are influencing the increased cost of motor insurance. The working group brings together all the relevant Departments and offices involved in the process. Its objective is to identify immediate and longer-term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector. The core areas to be examined by the working group in this first phase are: the motor insurance sector generally at present and in recent years; the effects of legal costs and litigation processes on insurance costs; the current claims compensation arrangements and the cost of claims; insurance data and information; the impact of accident rates; the impact of unlawful activity on the insurance sector; and other market issues.

A number of additional issues relating to motor insurance which impact upon consumers and the business sector are also being considered. These include the lack of a link between the national car test and the availability of insurance; insurance costs for young drivers 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 emigrants having difficulty obtaining car insurance; and the cost of insurance to taxi drivers, hackneys, hauliers and others involved in the transport business.

As the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, the Minister of State, Deputy Eoghan Murphy, has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has commenced. The sub-groups are meeting weekly and their outputs are feeding into the meetings of the main working group. The working group will be holding its fifth meeting this Thursday and will continue to meet every two to three weeks to the end of 2016.

A consultation process has commenced. The Minister of Stat has had informal meetings with representatives from a number of key stakeholders including Insurance Ireland, AA Ireland, the Irish Brokers Association, the Injuries Board, IBEC, FBD Insurance and the Central Bank of Ireland. The working group and the four sub-groups are also meeting with the relevant stakeholders. At its third meeting, the working group met representatives from the Law Society, AA Ireland, the Irish Brokers Association and the Consumers' Association of Ireland. Further consultations will be arranged. In addition, submissions received from all interested parties are being considered as part of the process.

By the end of October, the working group will provide the Minister for Finance with an update report which will set out the priority actions required. From November to December, the working group will then develop an action plan to enable the relevant Departments and offices to commence the implementation of these priority actions. In this regard, the Minister of State will be consulting regularly with Government colleagues.

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