Maura Hopkins (Fine Gael) | Oireachtas source

I welcome the Minister of State to the House. I raised this issue in the House with him a number of months ago. We are very much aware that the spiralling cost of insurance is placing a massive burden on motorists. I have been contacted by many people who are struggling to pay insurance premiums. As Senator O'Reilly pointed out, it is an issue that disproportionately affects rural areas where people do not have the luxury or option of public transport and, as a result, owning a car to get to work and do one's business is a necessity. We know premiums have risen by up to 50% in some cases over the past year, and there is potential for further rises as we move through 2017.

I know the Minister of State has been working extremely hard on this issue. It is very positive that we now have a report which seeks to provide clear recommendations on tackling the rising cost of motor insurance. We hope the national claims database will add greater clarity to the level of claims throughout the country and shed light on an area about which we know very little. We have figures from the Personal Injuries Assessment Board, PIAB, but there are questions that need to be answered by the insurance industry in terms of claims and settlements being made outside those structures. The personal injuries commission will provide an enhanced level of guidance on compensation in personal injury cases. As the Minister of State noted, the fact this grouping has met on two occasions and that it has an agreed action plan is very positive. The working group has recommended the establishment of a fraud database. This coupled with the new number plate recognition system will help to recognise uninsured drivers and tackle fraud, which is necessary.

I wish to highlight the plight of farmers who are informing me about big increases in their premiums. Some of them are quite significant - up to 30%. They tell me that the increases are not based on extra claim costs or increased risks such as large numbers of machines or tractors. Farmers and contractors with small and large operations are seeing increases. Farmers are battling with tight margins so trying to meet these costs is very difficult. We also know the potential challenges posed by Brexit, especially in the area of the movement of goods across the UK. It is essential that our road haulage companies have access to insurance premiums comparable to our European partners. Irish-registered haulage companies relocating to other countries to reduce their cost base mainly due to high insurance premiums is not in anybody's interest. We must ensure we are as efficient as possible to deal with any challenges we may face in a post-Brexit era.

That swift action has been taken is very positive. We need to see greater affordability for consumers. That must be our key priority, but most of all, in terms of tackling the rising cost of motor insurance, we need to see evidence on the ground of greater transparency and greater fairness. As the Minister of State is aware, I will be keeping a very close eye on it. We need to ensure we support people and to ensure insurance is affordable for them. I thank the Minister of State for his time and work on this issue.