Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

2. To ask the Minister for Finance when he will receive the report on the cost of motor insurance (details supplied); and the steps he will take, legislatively and through regulation, to enact its recommendations [34089/16]

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

This question is on the same issue as the previous question tabled by Deputy Michael McGrath. I acknowledge that there are some indications that the cost of premiums is beginning to reduce. A monthly reduction of 8.2% will be helpful, although overall premiums have increased over the year. The reduction also comes on the back of steep increases in previous years.

The Minister of State noted that the 40 recommendations cover nine key areas and he also provided some statistics. What is the definitive timeframe for publishing the recommendations submitted to the Minister? When will they and the related documents be published? When will a timeframe be provided for the implementation of the recommendations?

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have an official reply to Deputy Pearse Doherty's question, which is identical to the reply to the previous question. If we take the reply as read, I will speak to the Deputy's questions. If I may, I will first respond briefly to the issues raised by Deputy Michael McGrath a moment ago.

We have to make a difference in this area for businesses and consumers and to have a competitive and functioning economy. It is important that the reforms will be across the insurance industry sector. Legislation will be required in some areas, while in others we will need to review existing legislation to ascertain whether certain sections of Acts that have been in place since 2004 have been commenced. We need to do different things and, again, that speaks to the consensus I hope to achieve to enable us to expedite the legislation and reviews.

We need to deliver clarity and transparency for consumers and the market to ensure they can be confident when seeking insurance cover that it will be provided at an appropriate price and will stand. They must also be able to see how increases in premiums are calculated and have more power, not only to shop around but also to understand and have faith in the operation of the market. They should not feel they are being unfairly penalised for things they have not done. This speaks to reforms that need to be made in the areas of claim costs, award amounts and the resolution processes currently in place.

To respond to Deputy Doherty's questions on a definitive date for publication, we have 40 recommendations and I wanted to wait until I had spoken in detail to the joint committee on each of them. I do not want one or two recommendations to find their way into the public domain as this could give the impression that we are only considering one issue and ignoring others. I will be more than happy to circulate to the joint committee the papers submitted to the Minister at the end of last month and I can do so immediately. I will also be more than happy to discuss them with the joint committee.

We indicated previously that the report would be published in December and I do not see any reason for missing that deadline. Much of the work for the report has been done but it has not yet been submitted to the Minister. We sent the recommendations to the Minister and added some context. I will also be able to speak to the context in the committee. Members will have a detailed report in December, which provides recommendations and an action plan with a detailed implementation timeline.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I welcome the Minister of State's engagement with the joint committee. The work of the committee has been helpful in creating a broader understanding and delving into the issues surrounding the substantial increase in insurance costs. I ask the Minister of State to provide the joint committee with the documents to which he referred at the earliest opportunity in order that we can have a full and rounded discussion prior to the publication of the final report.

I would welcome if that could take place at an early opportunity. The Minister of State knows my position about the motor insurance industry and I have made a submission on it. There are several actions that can be done simply. For example, the Department plans to improve the motor insurance compensation framework. This should be implemented as soon as possible. This is one of the issues referred to us both privately and in the committee by the industry that will give some certainty.

There is also legal services legislation that allows for regulations that will give a greater choice to the claimant in terms of solicitors. The courts Act 2004 needs to be reviewed to see if it is contributing to costs in the sector. Transparency, the buzzword, needs to be central to whatever recommendations the Minister of State will make. From our point, we will certainly work with the Minister of State in the recommendations. We hope they will be substantial enough to deal with a reversal in the increases in premiums, rather than just sustaining them.

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The committee has been helpful. The work of the working group has been in private whereas the finance committee, embarking on a series of hearings, gave an opportunity for the Oireachtas to interrogate some of the information in the public domain. Again, it may have been put out in a particular fashion or perhaps to speak to a particular point. The committee has allowed the public to see are the complications around this and how different voices in the media that may not reflect the underlying problems.

I would like to appear at the committee next week if possible, but I have not had a chance to raise that with the Chair. The Finance Bill is continuing on Committee Stage next week. The Deputy is right, however, that the earlier the better.

On the report published by the Government earlier this year on motor insurance compensation, I have engaged with industry on several occasions already on that matter. We are awaiting the outcome of a particular court case as well. A further piece of work has to be done and there is a recommendation which speaks to that.

In so far as the Civil Liability and Courts Act 2004 is concerned, there are several measures to review certain sections in the legislation but also other sections which have not commenced. Transparency of data is key. It is important for a healthy competitive sector and combatting potential insurance fraud, as well as being important for confidence for consumers. The working group has been trying to get certain data from the industry so as to drill down into and get a better understanding. Even that has proved difficult. We are continuing to work with industry to ensure there will be no delay in implementing certain registers, frameworks or databases. These will only serve the public interest and which already exist in other jurisdictions such as the UK. There should be no problem in doing them here as well.

In so far as the reversal of premiums is concerned, I have been communicating to industry from the working group is that we want to give as much certainty as possible to the sector as to the Government's plans. It is hoped that even before recommendations come online that this certainly will help them to at least put a stop to increases in premiums. Then, as the recommendations work their way through, we should see some of those costs come down.

Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I welcome that and, hopefully, we will get it into the committee next week and that the working group's recommendations will deal with the problem we are facing in the here and now. One of the first campaigns I was involved in outside of Sinn Féin was with the Motor Justice Action Group because when I was a young motorist I was suddenly charged £3,500 for insurance. This is a cyclical problem and we need to ensure the working group just does not stop working after this process is complete. We need a permanent body which will continually monitor this. Such a body will also need to ensure tweaks in other areas are made to ensure the cycle does not emerge again.

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

One will hear from the industry about how the insurance sector in Ireland works in super cycles, which is incredibly damaging for the economy. The ability for super cycles to play out again in the future is limited. We do, however, have a recommendation which will speak to a more long-standing commitment in terms of a commission which will keep us under constant review. The working group will continue to sit for at least the rest of next year. We need to ensure the recommendations are being implemented to the timeline that we will have. Once we have done our report on motor insurance, we will move into other non-life areas, which are issues of concern for the business community.