Pearse Doherty (Donegal, Sinn Fein)
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36. To ask the Minister for Finance the steps the cost of insurance working group has examined to ensure a greater data granularity in the price of motor insurance in view of the fact that despite the CSO showing a decrease in premiums many persons are still receiving quotes for insurance that include a large increase in price; and if he will make a statement on the matter. [10837/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the Cost of Insurance Working Group examined the need for greater data transparency in relation to the factors that influence the cost of motor insurance premiums.  While the Central Statistics Office (CSO) collects data on the price of motor insurance premiums as part of the Consumer Price Index (CPI) each month, the Working Group believed that there was a need to develop an understanding of how claims costs are impacting premiums, in particular understanding the relationship between the price paid by a customer for motor insurance and the cost to insurance undertakings.

Consequently, one of the key recommendations of the Working Group was to establish a National Claims Information Database, (NCID), the purpose of which will be to facilitate a more in-depth annual claims’ trends analysis.  Work is underway on this project, and in this regard, the Government recently approved the General Scheme of the National Claims Information Database Bill. It will provide the Central Bank with powers to hold and maintain this database and to carry out statistical analysis of movements in private motor insurance claims costs and trends.  Drafting of the Bill has been given priority status in the Government’s Legislative Programme for this term, and has been commenced by Parliamentary Counsel.  In addition, the Joint Oireachtas Committee for Finance, Public Service and Reform, and Taoiseach, informed me recently that no further pre-legislative scrutiny is required on the draft Scheme.  I would like to thank the Committee for this and am hopeful that the Government will be able to publish the final Bill in the coming months.

In relation to the CSO data,  I am informed that it uses a variety of detailed profiles (including car age, car model, driver experience, driver history) sent directly each month to motor insurance companies that represent a substantial portion of the market share.  The profiles each company receives remain consistent each month so that the CSO can use a continuous "like with like" comparison in the best way possible and in this regard each company is sent a representative set of profiles for their consumer base.  The risks vary based on the detail contained in each of the profiles in order to get a larger spread of the realistic market. 

Finally, the most recent CSO data (for January 2018) indicates that private motor insurance premiums have decreased by 17% since peaking in July 2016.  I am satisfied that the CSO statistics indicate a particular direction of travel in relation to pricing and also a greater degree of stability on an overall basis. However, I do accept that these figures represent a broad average and therefore there are some people who may still be seeing increases.  However, I am hopeful that this greater stability in pricing will be maintained and that premiums should continue to fall from the very high levels of mid-2016.