Frank Feighan (Fine Gael) | Oireachtas source

I compliment the very good work carried out by the working group on the cost of motor insurance and by the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach. It is fair to say that this is an issue that affects thousands of people and businesses throughout the country. It is also fair to say that the rise in insurance premiums is proving to be a major challenge for many people, and in some cases the ability to meet those rising premiums is threatening livelihoods and jobs. The evidence is very stark when it comes to motor insurance.CSO data shows that motor insurance premiums have increased by more than 50% since 2011. That increase is way in excess of EU trends. From talking to people in the insurance industry I know that motor insurance premiums here were discounted during the past ten years. That may have been done for competition purposes. The motor insurance companies would say they did not make money from the motor insurance market. I do not know what happened but motor insurance was priced as a loss leader and now insurance premiums are increasing. I do not know if the Minister of State is aware that premiums were discounted and perhaps that was due to what happened with Quinn Direct or dash for cash operations, but insurance companies did not make money from motor insurance. It is unfair that premiums have increased by 50%.

We must remember that under EU law the Government cannot mandate the setting of premium prices. That is the remit of the insurance companies. However, the State can play an important role in helping to stabilise this volatile market. In that context, this has led to some worthy recommendations by the working group in its research in terms of improving data availability, improving the personal injuries claims environment, reducing the costs in the claims process and reducing insurance fraud and uninsured driving, and promoting road safety. I am delighted the Garda traffic corps is being provided with vehicle recognition equipment. Northern Ireland is years ahead of us in that respect. There are still issues in certain sectors in terms of staged crashes. I have heard anecdotal evidence that sometimes insurance companies do not challenge those involved as much as they should have and, unfortunately, that has put the burden of the high cost of insurance on young people, businesses and motorists throughout the country.

A key element in protecting the consumer is to ensure we have increased transparency. We have engaged in much head scratching wondering how insurance companies' premiums have increased to such a high level but more transparency in how insurance companies calculate premiums would be welcome and would also allow the consumer to make a more informed choice. Insurance companies should have told people their insurance products were priced as loss leaders for the past ten years, not that anybody would have believed them. It is an issue with the premiums now having increased by 50% but that is their business. Some of the evidence on the rise in premiums makes for horrifying reading. The Motor Insurance Bureau of Ireland pays out up to €60 million annually to meet claims involving uninsured drivers. This is where vehicle recognition equipment comes into play and more Garda traffic corps vehicles need to be fitted with that equipment. We did not move quickly enough to sort out this problem. We must also address the issue of insurance fraud.

I echo the sentiments made by the Minister of State during a similar debate in the Dáil last month. He said that the work on tackling high insurance costs is about bringing stability to the market and delivering measures to ensure fair premiums for customers. There is now a determination on the part of the Minister of State, the Government and all parties to implement long-term measures to protect the consumer, while ensuring we have a stable, transparent and competitive insurance sector.