John Curran (Dublin Mid West, Fianna Fail)
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8. To ask the Minister for Finance when the working group on the cost of motor insurance last met; the number of times it has met to date in 2017; the number of the report's 71 actions that have been implemented in full to date; the number that will be implemented in full by the end of 2017; the timeframe for all the actions to have been implemented in full; if reductions in motor insurance policies have been achieved following a number of years of excessive premium increases; and if he will make a statement on the matter. [50869/17]

Jack Chambers (Dublin West, Fianna Fail)
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14. To ask the Minister for Finance the status of the implementation of the recommendations made in the report by his Department's working group on reducing the cost of motor insurance; the number of recommendations that have not been implemented to date; the reason for same; and if he will make a statement on the matter. [50834/17]

John Curran (Dublin Mid West, Fianna Fail)
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It is almost a year since the working group on motor insurance published its report containing 33 recommendations and 71 specific actions. Will the Minister update the House on the implementation of the report and, more importantly, the effect it has had on motor insurance premiums?

Michael D'Arcy (Wexford, Fine Gael)
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I propose to take Questions Nos. 8 and 14 together.

The cost of insurance working group's report on the costs of motor insurance was published in January 2017. It makes 32 recommendations, with 71 associated actions to be carried out within agreed timeframes which are set out in the action plan. The most recent meeting of the working group took place on 25 October and the group has met 14 times thus far this year. In parallel with the ongoing implementation of the motor insurance report's recommendations, the working group has been undertaking an examination of the employers' liability and public liability insurance sectors. In addition, two subgroups examining the specific issues relevant to these sectors were established and have been meeting on a near weekly basis.

In line with the commitment to publish quarterly update reports on the implementation of the recommendations made in the report on the cost of motor insurance, the working group has published three update reports to date, most recently on 23 October 2017. I am pleased to note that of the 32 actions due for completion before the end of the third quarter, 29 have been completed. Substantial work has taken place on the nine action points categorised as ongoing.

Of the three actions which have not been fully completed to date, two relate to the same recommendation which requires the approval of the Minister for Justice and Equality and the Garda Commissioner for potentially far-reaching co-operative mechanisms between Insurance Ireland and An Garda Síochána to be formalised. The other outstanding action is contingent on the establishment of the new office of the legal costs adjudicators, now scheduled for 2018.

While it is inevitable that some recommendations will take longer to implement than envisaged at the time the report was written, I am satisfied that, in overall terms, the recommendations made in the report are being implemented in a timely fashion. The fourth quarterly update should be published early in the new year and will focus on the 14 actions due for completion in the final quarter of 2017. All of the remaining actions are scheduled to be completed before the end of 2018.

In response to the question of whether reductions in motor insurance costs have been achieved, the most recent CSO-CPI data for October indicated that average private motor insurance premiums had decreased by 15.2% since peaking in July 2016.

John Curran (Dublin Mid West, Fianna Fail)
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I thank the Minister of State for the answer and understand he had to summarise everything within the time available. The first issue concerns the effectiveness of the report and its implementation. It is worth reflecting on the fact that in the three years before the actions were taken, there were significant annual increases in the cost of motor insurance premiums. I understand that in 2015 alone the rate of increase was over 30% and that there were double digit increases in other years. I reiterate that having no increase will not be a result, rather we need to see significant decreases in insurance policy costs. The Minister of State might comment on the establishment of a fully functioning, integrated insurance fraud database and a database of uninsured drivers. It was indicated that both would have an impact on premiums. What progress has been made in establishing the databases?

Michael D'Arcy (Wexford, Fine Gael)
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Of all the insurance issues I have taken up since I was appointed Minister of State, this involves the most effective group of people I know. The group is cross-sectoral and comprises officials from the Departments of Justice and Equality; Transport, Tourism and Sport, and Finance, as well as the Central Bank. Everyone is working to try to implement the recommendations made in the report as quickly as possible. There is, however, no silver bullet and the effect will be cumulative. We have to examine a number of facts. Prior to 2011, there was, in effect, a price war in the insurance market. Price wars never end well. Companies were providing insurance policies at too low a rate. The increase in cost since has been about 60%. There has been a 15% increase since the peak. However, things are moving in the right direction. We have dealt with all of the recommendations made, the implementation of some of which will take time. It will require co-operation with other Departments and agencies over which we do not have control, but we are pushing and pulling in every which way we can to try to implement as many of the recommendations made as possible in order that we can bring down the cost of insurance. I know of the impact hikes in the cost of insurance premiums are having on individuals and businesses.

Jack Chambers (Dublin West, Fianna Fail)
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I welcomed the publication of the report in 2016. It contained a number of ambitious recommendations and targets, as well as an action plan. My question relates to the 11.6% increase in 2014, the 30.8% increase in 2015 and an increase of up to 28% in 2016. We know that we have reached the peak, but many people, including taxi drivers, have seen their premiums rocket. I recognise, however, that work is being done. I refer to the targets set in the third update on progress. The approval of the Garda Commissioner is required for a mechanism to provide for further co-operation between the insurance sector and An Garda Síochána in insurance fraud investigations. Does the Minister of State have a specific update on that matter and why the target has been missed? I refer to the giving of approval by the Minister for Justice and Equality for a mechanism to provide for further co-operation between the insurance sector and An Garda Síochána in insurance fraud investigations. Why have the targets not been achieved?

Michael D'Arcy (Wexford, Fine Gael)
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I will touch on the issue of fraud as quickly as I can. Fraud has a major impact on the cost of insurance. There are two types. The one which receives more coverage is where somebody sets up an accident. Another type which occurs much more frequently than the first involves over-exaggerated claims. There is a perception that it is not quite fraud because the Irish mindset is that if there is an accident, one will get the maximum one can out of it, rather than what the level of a compensation claim should be. Serious constitutional issues need to be concluded in respect of An Garda Síochána in the transfer of information. There are data protection and other concerns which perhaps were not thought out effectively. We are working on that aspect and doing the very best we can, but we may or may not be able to achieve implementation of that recommendation. It will depend on the advice from the Attorney General and the views and opinions of other Departments.

John Curran (Dublin Mid West, Fianna Fail)
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While we give the global figures, it is worth pointing to some individual cases which are often not reflected in the figures. Some two or three issues come up in my office time and again. One concerns people who have been accident and claim free for several years and are now a bit older. They are finding it more difficult to obtain quotes which are getting are higher.

The second issue concerns people who are driving cars which are approaching the age of ten years or thereabouts. They are also experiencing difficulties, despite the fact that their cars have passed the NCT and so forth. In the modern era such cars would not be seen as unreliable or unsafe. However, motor insurance companies are taking a different view.

The third issue is more disturbing. In my constituency I have dealt with a number of cases in which people have moved to new houses a couple of miles away. In one case a woman who was renting in one part of the constituency and then bought a house somewhere else had to pay €300 for the privilege of having a different address.

Michael D'Arcy (Wexford, Fine Gael)
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Was that the cost of the motor insurance premium?

John Curran (Dublin Mid West, Fianna Fail)
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I am only referring to motor insurance. I do not want to labour the point, but global figures do not always reflect what is happening in the insurance market.

Michael D'Arcy (Wexford, Fine Gael)
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I thought I had heard of everything, but this is the first time I have heard of that happening. I will ask the officials whether they have been made aware of it. One criticism I have of the insurance sector concerns the arbitrary nature of the figures quoted to customers. On multiple occasions an arbitrary figure seems to have been plucked out of the sky. One man told me that his insurance premium had increased from €500 to €900. His broker told him that he could not get it any cheaper with the company. He then went to a different broker who contacted the same company and was quoted the original price. I cannot explain it. When I put the case to the insurance companies and asked them to explain it, they were unable to do so. There is an inconsistency which is creating a difficulty and adding to insurance costs. The global figures are decreasing. I always advise people to challenge brokers or insurance companies when premium costs jump to try to get the best possible price.

Jack Chambers (Dublin West, Fianna Fail)
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I echo the concerns expressed by Deputy John Curran. Taxi drivers are being driven out of self-employment. Young drivers cannot obtain insurance policies or have to be included in secondary or other policies. As a result they have to sell additional cars. There is a contradictory policy within the State whereby we are trying to incentivise people to improve their cars via the obtaining of NCT certificates, but insurers will not provide insurance policies. It is also an issue of competition. Have licence applications been rejected? Many insurance companies misrepresent themselves by offering numerous marketing gimmicks and schemes.

We are all familiar with the different branding that exists under the one arm, and especially under the one underwriter. Has any investigation taken place regarding consumer protection under the licensing regime? Have other international insurers applied to enter the market? How difficult has this been in the context of the current problem around competition?

Michael D'Arcy (Wexford, Fine Gael)
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No cases have been brought to my attention relating to taxi drivers whose insurance has increased by such an amount that they have gone out of business. If the Deputy is aware of individual cases, I ask that he tell me and I will take up the matter. If someone has not had an accident, or there is no obvious reason that his or her premium should increase, I ask that the Deputy make me aware of it and I will take it up on his or her behalf.

I am aware of an important facility for young drivers which is not commonly known. One company, AIG, gives young drivers the opportunity to place a black box-type device into their cars. It provides information about where the car is, how fast it is driving and how it is being driven. AIG's premiums are around half that of the average of other companies, but drivers must know that if they drive irresponsibly, their premiums will be withdrawn. AIG has removed insurance in some 18 or 20 cases. The opportunity is there, however, and it is half the cost of other companies for young drivers. It is a good idea for young drivers, if people are prepared to take it up. I am raising it here, although perhaps I should not-----

Pat Gallagher (Donegal, Fianna Fail)
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Deputy.

Michael D'Arcy (Wexford, Fine Gael)
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-----is that it is in the interests of the insured young drivers.