Tommy Broughan (Dublin Bay North, Independent)
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164. To ask the Minister for Finance when he expects the insurance accident claims database, to be administered by the Central Bank, to come into operation; and if he will make a statement on the matter. [23198/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The development of the National Claims Information Database is a complex project as insurers very often record data in different ways and do not necessarily use the same definitions. On 19 December 2017, the Government approved the General Scheme of the Central Bank (National Claims Information Database) Bill. The Bill is included in the Government Legislative Programme on the list of Priority Legislation for publication this session. The Joint Oireachtas Committee on Finance, Public Expenditure and Reform and the Taoiseach indicated to me in February that it would not be conducting pre-legislative scrutiny on the Bill.

The Office of the Parliamentary Counsel assigned a drafter to the Bill on 26 January 2017 and officials in the Department of Finance are currently working with the drafter to finalise a draft of the Bill as soon as possible. I understand that good progress has been made and I am hopeful that a Bill will be published before the end of this legislative Session. A consultation will also have to take place with the European Central Bank on the Bill once it is published.

While it will take a certain amount of time, following publication of the Bill, for the Bill to pass all stages through the Houses of the Oireachtas, I am hopeful that with the cooperation of all parties in the Houses, it can be considered and approved expeditiously.

To ensure that the Database can be operationalised quickly following the enactment of the legislation, the Central Bank has continued to work in parallel on the technical specification for the Database.

Tommy Broughan (Dublin Bay North, Independent)
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165. To ask the Minister for Finance the steps he is taking to ensure that consumers receive the full benefit of the single EU market for all insurance products; and if he will make a statement on the matter. [23199/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I would like to clarify at the outset that it is possible for an insurance undertaking authorised in one member state to conduct business in another EU/EEA state either through:

- establishing a branch operation in the host country and thus  conducting business on a ‘freedom of establishment’ (FOE) basis; or

- writing business from the home country (i.e. where authorised) into the host country on a ‘freedom of services’ (FOS) basis.

In relation to motor insurance, the undertaking is required to meet certain obligations in the host member state, such as becoming a member of the national bureau and the national guarantee fund.  These are important requirements as the Bureau is tasked with meeting the requirement of compensating victims of accidents caused by uninsured and unidentified vehicles.

Notwithstanding the extent of the existing framework, the Cost of Insurance Working Group, chaired by Minister of State Michael D'Arcy, T.D., heard from a number of stakeholders, particularly in relation to motor insurance, the view that there is room for further harmonisation in cross-border insurance.  The Working Group concluded however, this is a pan-European issue which will only be resolved at that level. 

Consistent with the Working Group’s recommendation, my Department is monitoring developments at EU level on an ongoing basis in relation to the issue of cross-border insurance provision and has instructed the Irish Permanent Representation to the EU to hold consultations in Brussels with relevant institutions on issues raised in the two Cost of Insurance Working Group Reports.  However, it is important to note that work at EU level very much depends on the priorities of the European Institutions, especially in the context of the ongoing negotiations with the UK as regard its exit from the EU. 

An update on this work was included in the Fifth Quarterly Update Report, which is available at the Department of Finance’s website at: http://www.finance.gov.ie/wp-content/uploads/2018/05/5th-Progress-Update-Q1-2018-Focus.pdf 

The current position at EU level is as follows:

- The Central Bank of Ireland (CBI) has an ongoing engagement with the relevant European authorities in order to ensure common standards are applied consistently.  In addition, the CBI fully participates in EIOPA (the EU overarching insurance regulatory body) to establish high quality common regulatory and supervisory standards and procedures.  EIOPA is also due to report in 2019 on the barriers to providing cross-border insurance in general.  The Department of Finance and the CBI will feed into the development of this report to ensure that the existing market for insurance is improved as much as possible.

- In relation to motor insurance in particular, on 24 May 2018 the European Commission published a proposal for a revised Directive on Motor Insurance. The proposal covers a range of issues including the portability of claims history statements throughout the EU and guarantees towards victims in cases of insurer's insolvency.  These issues are relevant to the work of the Cost of Insurance Working Group and I welcome the publication of the proposal.

Finally, an important point to note is that in considering whether to take on Irish risk business, an insurer will look at a wide range of factors including the award levels, the legal system, the general claims culture etc.  Therefore ultimately, even if we do get a more efficient and more accessible EU insurance market, there can be no guarantees that insurers in other jurisdictions will automatically be willing to take on Irish risk.