Danny Healy-Rae (Kerry, Independent)
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281. To ask the Minister for Finance the progress being made in determining the causes of the increase in insurance costs in 2016, as most premiums have increased significantly (details supplied); and if he will make a statement on the matter. [25429/16]

Michael Noonan (Limerick City, Fine Gael)
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The Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy TD, is undertaking a review of the factors which are influencing the increased cost of motor insurance.  The Working Group brings together all the relevant Departments and Offices involved with the process.  Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.

The core areas to be examined by the Working Group in this first phase are:

- The motor insurance sector generally, at present and in recent years

- The effects of legal costs and litigation processes on insurance costs

- The current claims compensation arrangements and the cost of claims

- Insurance data and information

- The impact of accident rates

- The impact of unlawful activity on the insurance sector, and

- Other market issues.

A number of additional issues which impact upon consumers and the business sector in relation to motor insurance are also being considered.  These include:  

- The lack of a link between the National Car Test and the availability of insurance,

- Insurance costs for young drivers, and those over 65,

- The case for rural dwellers with no public transport to have car insurance at a reasonable cost,

- The issue of returning immigrants having difficulty obtaining car insurance,

- The cost of insurance to taxi drivers, hackneys and hauliers. 

Because the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, Minister of State Eoghan Murphy has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has already commenced.  The sub-groups will be holding their second meeting in the coming days, and it is proposed that they meet regularly.  The outputs of these sub-groups will feed into the meetings of the Working Group.

The Working Group has held two meetings to date, on 20^thJuly and 1^stSeptember.  It will hold its third meeting on 15^thSeptember.  Further meetings are scheduled for every two to three weeks to the end of 2016. 

The consultation process has commenced.  Minister of State Murphy has had informal meetings with representatives from a number of key stakeholders including:

Insurance Ireland, AA Ireland, the Irish Brokers Association, the Injuries Board, IBEC, FBD Insurance, and the Central Bank of Ireland.

The Working Group and the four sub-groups will also meet with the relevant stakeholders.  At its meeting this week, the Working Group will meet with representatives from the Law Society, AA Ireland, and possibly a couple of other relevant stakeholders depending on their availability.  In addition, submissions received from all interested parties will be considered as part of the process.

By the end of October, the Working Group will provide me with an update report which will set out the priority actions required.  From November to December, the Working Group will develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, the Chair will be consulting regularly with Government colleagues.