Rose Conway-Walsh (Mayo, Sinn Fein) | Oireachtas source

I commend my colleague and party finance spokesperson, Deputy Doherty, on bringing forward this Bill. He has provided an opportunity to all Oireachtas Members, from all parties and none, to demonstrate to the people who have been crucified by high insurance costs that this House is prepared to stand for fairness. Insurance companies have hidden for years behind the book of quantum. They have continually and consistently used the high cost of personal injury claims as cover for charging eye-watering premiums for compulsory insurance. Since the personal injury guidelines took effect on 24 April this year, they no longer have that defence.

We know from experience that every possible tactic is used by the insurance industry to keep the raw data hidden from those who ask why Irish policyholders are forced to pay extortionate premiums. Indeed, the European Commission was sufficiently concerned about price-fixing and the cartel-like behaviours of motor insurance providers that it conducted unannounced inspections. When the CCPC conducted its own investigations, it found a lack of data on the market was serving as a barrier to new entrants. Price gouging and ripping off of people who are legally required to purchase insurance must stop. It is not enough just to stabilise the situation as it is. There must be a reversal of the crippling cost of insurance.

That is why this Bill is so important. Put simply, it will require insurance providers to provide relevant data to the Central Bank that will show whether savings from the implementation of the new guidelines are being passed on to policyholders. The substantial reduction in insurance costs must be the endgame. Otherwise, the guidelines are just a paper exercise to increase the profits of the insurance industry. We must stop dancing to the tune of the industry. The Government needs to tackle the exploitation of people who can least afford to hand over their hard-earned money but are left with no other option. Reductions in the cost of insurance claims must be passed on to customers.

This Bill will guarantee the outcome we need. It will apply pressure on the industry to pass on all the savings it makes, euro for euro, to its customers. We know the new guidelines reduce the level of personal injury awards by between 31% and 69%. Similar regulations came into effect in Britain, as Deputy Doherty indicated, following a reduction in the level of whiplash injury awards. Many of the same insurers that are active in the British market are operating here. Motorists, business owners and homeowners need us to make a stand for them and they need us to do it now.

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