Joan Burton (Dublin West, Labour)
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82. To ask the Minister for Finance if he and the Minister for Transport, Tourism and Sport have received initial recommendations following a review of rising motor insurance compensation; the status on the review of policy in the insurance sector, which his Department is currently undertaking in consultation with the Central Bank; the reforms he is considering to tackle the problem of motor insurance premiums that are rising at an annual rate of as much as 35%; if he will update the book of quantum; and if he will make a statement on the matter. [34092/16]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Cost of Insurance Working Group, which I established in my Department and which is chaired by Minister of State Eoghan Murphy, is examining factors that are contributing to the cost and availability of motor insurance and identifying what short-term, medium-term and long-term measures can be introduced to help consumers and businesses.  A broad range of issues affecting the cost and availability of motor insurance are being examined by the Working Group.

The Working Group brings together all the relevant Departments and Offices involved with the process, including the Central Bank of Ireland.  As well as identifying immediate and longer term measures which can address increasing costs, account is being taken of the need to maintain a stable insurance sector.  The initial focus of the Working Group is on rising motor insurance premiums.

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

The Cost of Insurance Working Group has met nine times to date and will continue to meet until the end of the year. The work is being progressed through four subgroups.  These subgroups have been meeting on a weekly basis since their establishment on 1^stSeptember 2016.

At the end of October 2016, the Working Group provided me with an initial set of emerging recommendations.  Since then, the Working Group has been working to finalise the Report and developing an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions.  The report and action plan will detail any legislative or regulatory changes that may be required and will include a detailed timeline for implementation. It should be noted that whilst the Book of Quantum has recently been updated, it does feature in the emerging recommendations.

From the emerging recommendations presented to the Minister for Finance and the consultations carried out since, it is likely that the report will address nine key areas, with in the region of 40 recommendations in total.