Joan Burton (Dublin West, Labour)
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208. To ask the Minister for Finance his plans to reform the motor insurance industry; if this will be carried out in conjunction with the Central Bank or the Competition and Consumer Protection Commission in view of the dramatic rise in insurance premiums for motorists; and if he will make a statement on the matter. [27319/16]

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, including the Central Bank.  Its objective is to identify immediate and longer term measures which can address increasing insurance 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

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 commenced. The sub-groups are meeting weekly and their outputs are feeding into the meetings of the Working Group.

The Competition and Consumer Protection Commission (CCPC) is the independent statutory body responsible for enforcement of competition and consumer protection legislation across the economy. The CCPC has informed me that, following a monitoring exercise that it started in October 2015, the CCPC formally opened an investigation in August 2016 concerning suspected breaches of competition law in the motor insurance sector. The investigation relates to industry participants openly signalling up-coming increases in motor insurance premiums in the State.  

The CCPC's investigation is separate from the issues being considered by the Cost of Insurance Working Group and does not interfere with the important work being undertaken there.

By the end of October, the Cost of Insurance 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 then develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, Minister of State Murphy will be consulting regularly with Government colleagues.