Michael McGrath (Cork South Central, Fianna Fail)
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67. To ask the Minister for Finance when the next progress update will be published on the report into the cost of motor insurance; and if he will make a statement on the matter. [21878/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Fifth Progress Updatewas published on the Department of Finance website on 11 May 2018, together with an accompanying press release. This is the first such quarterly report to provide details on the implementation of the Report on the Cost of Employer and Public Liability Insurance, as well as continuing to outline developments in respect of the Report on the Cost of Motor Insurancerecommendations.

In relation to the Liability Insurance Report, all eight actions scheduled for delivery in the first quarter of the year have been fully completed. Of the four actions in the Motor Report with a Q1 2018 deadline, one has been met in full and it is expected that at least two of the other three will be concluded during the second quarter. Further details can be found in the attached link.

www.finance.gov.ie/wp-content/uploads/2018/05/5th-Progress-Update-Q1-2018-Focus.pdf.

The Action Plan Monitoring Dashboard for the Motor Report currently indicates that 40 of the 50 separate deadlines set thus far have been met. Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”.

The main reason for the delays in the actions not fully completed on time is that most of these actions relate to large and far-reaching projects involving multiple stakeholders, which can lead in many instances to significant legislative implications which need time to be adequately dealt with such as, for instance, the National Claims Information Database.

However, aside from Action Point 2, which I believe has been satisfactorily addressed through a protocol agreed with Insurance Ireland, the rest of the action points continue to be worked upon in order to complete them as soon as possible.

It is planned at this juncture that the next Quarterly Update, which will focus in particular on the 14 actions across the two Reports with Q2 2018 deadlines, will be released before the end of July.

Michael McGrath (Cork South Central, Fianna Fail)
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68. To ask the Minister for Finance if recommendation 8 of the report on the cost of motor insurance has been completed; his views on the assessment of an organisation (details supplied) that the recommendation is covered by the Central Bank's consumer protection code; and if he will make a statement on the matter. [21879/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Fifth Progress Update,which provides details on the implementation of the Report on the Cost of Motor Insurancerecommendations, was published on the Department of Finance website on 11 May 2018. This Fifth Progress Update confirms that Action Point 17 (associated with Recommendation 8), which calls upon Insurance Ireland to put in place a general protocol around the requirement for insurance companies to notify a policyholder of claims made against them before settlement, has not yet been completed.

The background to this position is that Insurance Ireland have argued that this recommendation is achieved through the application of the Consumer Protection Code (CPC) and that a previously agreed protocol between the Irish Insurance Federation (IIF – the predecessor to Insurance Ireland) and IBEC titled Communication Guidelines for Insurers & Policyholders -April 2003 - has been superceded.

It should be noted that much of which was in this aforementioned protocol covers what is required to implement fully recommendation 8 and in particular addresses what is a key missing feature in the CPC i.e. the absence of any requirement for policyholders to receive appropriate communication and engagement with their insurer in relation to claims made against their policies.

As a result, the Minister of State for Financial Services and Insurance, Michael D’Arcy TD, wrote to Insurance Ireland on this matter on 8 December 2017 to ask the insurance industry to fully implement this recommendation as soon as possible. A response to this letter was received on 3 April 2018 which reiterates Insurance Ireland’s position that the CPC is sufficient in their view.

In conclusion, it should be noted that my Department is continuing to pursue the implementation of Recommendation 8, in parallel with a related recommendation from the EL/PL Report. Options are being considered as to the best course of action for bringing the recommendations forward, given industry’s diverging opinion on the matter.