Results 13,041-13,060 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (14 Sep 2016)

Michael McGrath: I have a few more questions. I am aware that the book of quantum is being updated in cases that go to court. Do the courts have to have regard to the book of quantum? Is it binding on them? What is the status of it?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (14 Sep 2016)

Michael McGrath: In terms of "have regard to", is it a case of "whatever you're having yourself"?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (14 Sep 2016)

Michael McGrath: My final question is for the actuaries. Their presentation seems to rationalise the reasons premiums have increased so much. They set out the background and the reasons and, in a sense, a justification for it. They do not reach any conclusion as to whether it is justified, but do we have data on the financial performance of the Irish arms of the multinational insurance firms? The...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (14 Sep 2016)

Michael McGrath: Is that on an aggregate basis?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Is that the Central Bank insurance statistics 2014?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Was it published at the end of September 2015?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Is it a 36 page document?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: I welcome the witnesses from Insurance Ireland. I will start with the issue of claims payouts. The latest official data from the Central Bank that we have relate to 2014 and show the total amount paid out in respect of motor liability claims. Does Mr. Thompson have the figure for 2015? Does he have the aggregate figure for 2015 for the overall motor liability claims paid? I trust...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: It is €1.2 billion. This is the kernel of the matter really because, put simply, Insurance Ireland has said that there are more motor insurance claims and those claims are costing more. The data show an increase because the 2014 figure was €1.0145 billion or thereabouts and last year it was €1.2 billion.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: That means it has increased by more 20% on the 2014 levels.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Let us look at the data that we have. In 2011, the figure was close to €1.6 billion, in 2012 it was €1.070 billion, in 2013 it was €990 million, in 2014 it was €1.014 billion and the figure for 2015 is €1.258 billion.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Can someone work out the percentage there? What percentage increase is that? By my calculations it is 24%.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: That is a significant increase. Those are hard data. That is the amount that has been paid out by insurance companies in respect of all motor claims, including direct settlements, court awards, Injuries Board awards and any other payouts. Is it correct to say that the figure captures the lot?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Fair enough. It is up 24% over 2014 levels but it is still significantly below the 2011 levels. That said, that seems to be an outlier in the data contained in the insurance statistical review. Premiums have increased by 70% in three years but the payouts three years ago were just under €1 billion and were just over €1 billion in 2012 and 2014. While there has been a 24%...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: No, I am talking about premium growth over three years, which is about 70%. Premiums grew by over 38% last year alone.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: I hear all of that, but let us be straight with people. The insurance industry has been pointing the finger for premium increases squarely at the issue of increased claims costs. The level of premium increases far outstrips the actual increase in the amount of claims paid out by the industry. Insurance Ireland has repeatedly said that premiums are a function of risk and the amount of...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Are claims pay-outs going up again in 2016? Does Insurance Ireland have that data?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Maybe Insurance Ireland should say that a little more. Premiums have gone up approximately 70% over three years while overall claims pay-outs have gone up by less than 25%.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: That is the reality. It is an important factor.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Rising Cost of Motor Insurance: Discussion (Resumed) (15 Sep 2016)

Michael McGrath: Mr. Thompson is saying there is a lag coming through. Is that correct?