Written answers

Thursday, 26 March 2015

Department of Transport, Tourism and Sport

Insurance Costs

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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263. To ask the Minister for Transport, Tourism and Sport the change in the cost of motor insurance as measured by the Central Statistics Office in each year following the introduction of the Personal Injuries Assessment Board; his views on the operation of the motor insurance market here; and if he will make a statement on the matter. [12634/15]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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​The Injuries Board (previously known as the Personal Injuries Assessment Board) was set up under the Personal Injuries Assessment Board Act 2003, and commenced operations in 2004. The Board's first annual report was published for 2004. Percentage changes in the cost of motor insurance as quantified by the Central Statistics Office, and available from the CSO StatBank, are set out in the table below.

As can be seen from this table there has been a significant fall in the cost of motor insurance since the Injuries Board was established showing a reduction of over 24% from 2003 to 2014. 

I consider that the PIAB Acts and the Injuries Board have had a significant positive role in reducing the processing costs of many motor insurance claims with a consequential beneficial effect in reducing motor insurance premiums and in encouraging insured driving.  I would support any further measures which would encourage claimants to pursue their claims through the more cost-effective Injuries Board route rather than through incurring unnecessary processing costs through the courts.

There has been a recent trend towards increasing motor insurance costs. While I am concerned with increasing motor insurance costs, the setting of prices in that area is a matter for the industry and I have no role in the regulation of insurers.

Affordable motor insurance is an important element in the delivery of road safety in Ireland and I would be concerned that increasing insurance costs could lead to an increase in uninsured driving to the detriment of all road users.

Motor Car Insurance

YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ANNUAL
2001 --- - -------100 -
2002 99.7 99.6 103 109 108 106 105 106 106 107 106 106 105.1
2003 106 107 108 108 108 108 107 106 103 97.9 94.9 94.5 104
2004 94.1 94.2 93.6 93.6 93.5 92 92.7 92.8 87.2 87.3 87.1 86.4 91.2
2005 86.2 85.7 84.2 82.4 82.4 82.5 81.5 81.5 81.5 81.8 79.8 79.8 82.4
2006 78.2 78.3 78.5 78.5 78.3 78.3 77.2 77.2 74 74 74 71.2 76.5
2007 70.9 70.5 70.3 66.1 66.1 66.3 66.7 66.3 66.7 65.8 65.8 64.4 67.2
2008 64 64.1 64.2 64.2 64.6 64.6 65 65.1 65.1 65 65.5 66 64.8
2009 68.3 69.4 71.2 72.5 72.6 73.3 73.8 74.6 74.7 74.4 74.1 72.7 72.6
2010 73.3 74.6 71.8 72.4 72.4 72.8 73.4 74.2 74 74.9 75.6 77.3 73.9
2011 75.5 76.3 76.3 77.3 77.9 78.8 79 78.2 78 78 77.9 77.9 77.6
2012 79.7 80.1 79.4 79.3 79.5 80 80.3 80.5 80.5 81.8 81.8 81.8 80.4
2013 74.1 73.8 74.3 75.2 73.4 73.2 74 74 74.1 73.8 73.8 74.2 74
2014 74.2 75.5 77.7 77.9 78 78.2 78.3 78.4 79 81.7 82.3 83 78.7
2015 85.3 87.4 --- ----- -- -

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