Michael Healy-Rae (Kerry, Independent)
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169. To ask the Minister for Finance if he will address an issue with regard to spiralling insurance costs for the road passenger industry (details supplied); and if he will make a statement on the matter. [8679/17]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation.  Neither I nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept.  This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.

However, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance.  Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair.  The Report on the Cost of Motor Insurance was finalised in December 2016, approved by Cabinet on January 10 2017, and subsequently published. It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation.  Work on carrying out these recommendations is well underway and I am confident that the report's 71 action points will be implemented by the end of 2018, with 45 due for completion this year.  The Working Group continues to meet regularly and will report on a quarterly basis detailing its progress.

With regard to the road passenger industry  in particular, the issues are in the main similar to those affecting drivers generally.  While there is no silver bullet to reduce the cost of insurance, cooperation and commitment between all parties can deliver fairer premiums for consumers, including coach companies, without unnecessary delay.  Greater co-operation will result from the implementation of the reports recommendations and will lead to greater stability in the pricing of motor insurance and will help prevent the volatility that we have seen in the market in the past.  It should also better facilitate potential new entrants to the market.