Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

A key recommendation of the cost of insurance working group, CIWG, was to establish a national claims information database. The Deputy will be aware that the Central Bank (National Claims Information Database) Act 2018 was commenced on Monday, 28 January 2019. The required consultation by the Central Bank with regard to the publication of the relevant regulations to outline the scope of the database took place in mid-March and I understand that the bank is finalising arrangements to publish these regulations. The Central Bank plans to collect claims data from insurance undertakings in the first half of 2019, with a view to publishing its first annual report under the legislation in the second half of 2019.

I am confident that, in addition to the two key information reports that my Department has published in 2017 and 2018, the database will considerably increase transparency around the factors that influence the cost of motor insurance. Increasing the availability of data in relation to employer and public liability insurance is also a matter that was discussed by the CIWG and its report on the cost of employer and public liability insurance recommends a number of actions to improve transparency in this area. Recommendation 1 required the Central Statistics Office, CSO, to consider the feasibility of collecting price information on the cost of insurance to businesses, and if it considered such an index feasible, to make appropriate proposals.

The CSO submitted its report to the CIWG in January 2019. While it found that no international precedent exists for such an index, and most price information methodologies it examined were not feasible, it indicated that it wanted to further consider a particular price information method that may potentially be capable of being operationalised. I understand that this method would use a commercially available technology solution to automatically price a high volume of representative profiles, that is, customer profiles such as an office-based company with 20 employees, good safety standards and no claims history. The price quotations for these profiles would be tracked over time to estimate the overall change in premiums.

The examination is under way, and it is expected that the CSO will provide the CIWG with a determination on feasibility during the summer.

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