Brendan Smith (Cavan-Monaghan, Fianna Fail)
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215. To ask the Minister for Finance the work undertaken to date by the taskforce established within his Department to undertake the review of the insurance sector; if his attention has been drawn to the widespread concerns in relation to the increasing costs of premia for motor insurance; and if he will make a statement on the matter. [27455/16]

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 risks 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 which may 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.  

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

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 Working Group has held four meetings to date and will continue to meet every two to three weeks to the end of 2016. Minister of State Murphy has had 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 is also meeting with the relevant stakeholders. At its third meeting, the Working Group met with representatives from the Law Society, AA Ireland, the Irish Brokers Association and the Consumers Association of Ireland. Further consultations are being arranged.  In addition, submissions received from all interested parties are being 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 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.