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

The cost of insurance working group, which I chair, 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 with 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.

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, I have 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 working group.

The working group has held five plenary meetings to date and will continue to meet every two to three weeks to the end of 2016. I am also in constant contact with the chairs and vice-chairs of the sub-groups to monitor progress and we are keeping to the tight deadlines.

The Department of Finance has provided additional human resources to the section dealing with insurance policy and servicing the Government task force and associated sub-groups.

A consultation process has commenced. I have had informal meetings with representatives from a number of key stakeholders including Insurance Ireland, AA Ireland, the Irish Brokers Association, the Injuries Board, the Irish Business and Employers Confederation, 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 with representatives from the Law Society, AA Ireland, the Irish Brokers Association and the Consumers Association of Ireland. This morning the working group met with representatives of Irish hauliers and the car rental sector. 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 updated report which will set out the priority actions required. We are already working on emerging recommendations. From November to December, the working group will develop an action plan to enable the relevant Government Departments and offices to commence the implementation of these priority actions. In this regard, I will be consulting regularly with Government colleagues and the Oireachtas.

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