Written answers

Thursday, 14 April 2016

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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71. To ask the Minister for Finance the steps he is taking to curb the escalating costs of motor insurance; the working groups he has established to deal with this issue; when he established these; the constituent members; the remit of the working groups; the expected outcome of their work; the deadline they are working to; the extent to which he has consulted motorist interest groups on this issue; and if he will make a statement on the matter. [7156/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The cost of insurance is a complex issue involving a number of different parties, including Government Departments, State Bodies and private sector entities. 

My Department has commenced a Review of Policy in the Insurance Sector. This is being undertaken in consultation with the Central Bank of Ireland and other Departments and Agencies. The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector. 

This Review will include an examination of the factors contributing to the cost of insurance and my officials have had preliminary meetings with the Department of Jobs, Enterprise and Innovation and the Personal Injuries Assessment Board (PIAB) in this regard.  The Department of Jobs Enterprise and Innovation have advised that the Personal Injuries Assessment Board (PIAB) expects to have the revised Book of Quantum ready as soon as possible.  The Book is not a recommendation for compensation levels but rather a reflection of the prevailing level of awards, that is: compensation values awarded by the courts; settlements agreed by the insurance industry; settlements agreed by the State Claims Agency; and settlements agreed through the PIAB process.  With regard to competition, the National Competitiveness Council emphasises that a resilient and well-functioning insurance sector contributes to economic activity and financial stability.  

The Department of Finance is working closely with the Central Bank of Ireland and has met with other stakeholders including the European Commission, Insurance Ireland, the Irish Brokers Association, the State Claims Agency and the Accountant of the Courts of Justice in the context of the functioning and regulation of the insurance sector generally. The consultation process will continue and will extent to consultation with certain motoring interest groups in due course. 

The first phase of the Review of Policy in the Insurance Sector is, however, concentrating on an examination of the framework for motor insurance compensation in Ireland. This work is being conducted by a Joint Working Group comprising officials of my Department and of the Department of Transport, Tourism and Sport, which began its work in January of this year.  The Joint Working Group will shortly report to myself and the Minister of Transport, Tourism and Sport with recommendations for our consideration. In turn these recommendations will be submitted to Government in the coming weeks.

The outcome of this work will feed into the wider review of policy in the insurance sector which I have outlined above. This work will continue over the coming months and is expected to be completed by the end of this year, with the final report to be presented to Government in due course.  

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