Michael McGrath (Cork South Central, Fianna Fail)
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106. To ask the Minister for Finance the chairperson and members of the task force his Department established to review the insurance sector, including motor insurance; its terms of reference; the dates it has formally met; the work it has concluded to date; its next steps; and if he will make a statement on the matter. [21615/16]

Michael Noonan (Limerick City, Fine Gael)
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As previously advised a task force has been established within my Department to undertake a Review of various aspects of Policy in the Insurance Sector. To date, the task force has been working on three specific insurance policy reviews, as follows:

1. A review of the framework for motor insurance compensation. This is a Joint Working Group involving the Department of Finance working closely with the Department of Transport, Tourism and Sport.

2. A review of flood insurance options which is being carried out by the Department of Finance and will feed into the final report of the Inter-Departmental Flood Policy Group, chaired by Seán Canney TD.

3. A review of the cost of insurance. To date the Department of Finance has engaged in bilateral consultations with the main stakeholders. This initial work will now be built upon through a Working Group chaired by the Minister of State, Eoghan Murphy TD.

Progress on these reviews is outlined below:

Review of the framework for motor insurance compensation

A Joint Working Group between my Department and the Department of Transport, Tourism and Sport has carried out a review of the framework for motor insurance compensation in Ireland, in the event of a failure of an insurance company. The objective of the review is to identify the features of a motor insurance compensation framework that is comprehensive, effective, affordable and consumer-focused.

The Joint Working Group met on nine occasions in the period January to June 2016. In addition to these meetings, the Joint Working Group also met and engaged with relevant stakeholders involved in the governance and administration of the motor insurance compensation system, including the Central Bank of Ireland, the Accountant of the Courts of Justice, the State Claims Agency and representatives of the insurance industry in Ireland. The review also considered models in place in other jurisdictions.

The Minister for Transport, Tourism and Sport and I are currently considering the Joint Working Group's report with a view to publication in the coming weeks. The report includes recommendations aimed at providing certainty regarding the compensation framework in Ireland.

Review of flood insurance

The Department of Finance has carried out a review of options for flood insurance with particular focus on the strategies that other jurisdictions have implemented to increase the availability of flood insurance cover. This work examined a number of policy options and the completed report has been sent to the Office of Public Works to feed into the final report of the Inter-Departmental Flood Policy Group, chaired by Seán Canney TD, Minister of State with special responsibility for the Office of Public Works and Flood Relief.

Review of the cost of insurance

An important element of the review of policy in the insurance sector is an assessment of the factors contributing to the increasing cost of insurance. My officials have met bilaterally over recent months with the Central Bank, the Department of Jobs, Enterprise and Innovation, the Personal Injuries Assessment Board, with representatives of the insurance industry in Ireland and with  other interested Government Departments and Offices.

Following the Dáil Private Members' Motion on this matter on 8thand 9th June, the scope of the review has been broadened to include other matters raised in that debate. Following completion of the work on the reviews of the insurance compensation fund and on flood insurance this aspect of the insurance review has now been given an increased priority. Progress will be overseen by a Working Group with representatives from all relevant Departments and Agencies and chaired by Minister of State Eoghan Murphy. The Working Group will examine issues that can be addressed on a more immediate basis and also those that require more long-term policy solutions. The first meeting of the Working Group will take place on 20th July with further meetings scheduled for early September and in the coming months.