Niall Collins (Limerick County, Fianna Fail)
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88. To ask the Minister for Finance the steps he will take to deal with the high cost of insurance for businesses as evidenced by the 2016 National Competitiveness Council's cost of businesses report and for individuals across many sectors; and if he will make a statement on the matter. [17892/16]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I am concerned that there should be a stable insurance sector and that the risk to policyholders and to the wider financial system are limited.  An adequately-reserved, cost-competitive insurance sector is a vital component of economic activity and financial stability.

The current high cost of insurance is a concern for the Government.  While the provision and pricing of insurance policies is a commercial matter for insurance companies, this does not preclude the Government from introducing measures that may, in the longer term, lead to a better claims environment.  This is a complex matter to address and it involves a number of Government Departments, State Bodies and private sector organisations.  I have established a task force in my Department to undertake a Review of Policy in the Insurance Sector. 

The first phase of the work of the task force is a Review of the Framework for Motor Insurance Compensation.  This is being carried out jointly with the Department of Transport, Tourism and Sport.  My colleague the Minister for Transport, Tourism and Sport and I expect to receive this first report shortly.

Separately, the broader work of the task force includes an examination of the factors underlying the recent increases in the cost of motor insurance but also including other aspects of insurance policy such as the availability of insurance at reasonable cost to particular businesses and sectors of the community which are reported to be having problems in this regard. 

This work of the task force is being undertaken in consultation with the Central Bank of Ireland, other Government Departments, Agencies and interested bodies.  The aim of the review is to recommend measures to improve the functioning and regulation of the insurance sector in Ireland, identifying the issues that can be addressed on a more immediate basis and those that need more long-term policy implementation.  This work will be completed over the coming months.