Maureen O'Sullivan (Dublin Central, Independent)
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183. To ask the Minister for Finance his views on whether the working group on car insurance has been a fruitful exercise; his plans to address the difficulties being faced by many motorists that are still being offered extortionate premiums; and if he will make a statement on the matter. [30985/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is acknowledged that pricing in the motor insurance sector has been subject to a lot of volatility in recent years and, indeed, the problem of rising motor insurance premiums was the main impetus for the establishment of the Cost of Insurance Working Group.  Its Report on the Cost of Motor Insurance was published in January 2017.  The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, set out within an Action Plan. 

Work is ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies and there is a commitment within the Report that the Working Group will prepare quarterly updates on its progress.  The fifth such update was published on 11 May and shows that of the 50 separate relevant deadlines within the Action Plan of the Report on the Cost of Motor Insurance set up to the end of Q1 2018, one relates to an action no longer being proceeded with; of the remaining 49 deadlines, 40 have been met.  Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”.

The Working Group will continue to focus on putting into place the measures proposed in the Report on the Cost of Motor Insurance, in parallel with those from the Report on the Cost of Employer and Public Liability Insurance.  It is envisaged that the full implementation of all the recommendations from both Reports cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, should achieve the objectives of delivering fairer premiums for consumers and a more stable and competitive motor insurance market.

I believe however that it is important to acknowledge that the average cost of motor insurance has been consistently falling since the middle of 2016, with the most recent CSO data (for May 2018) indicating that private motor insurance premiums have decreased by 19% since peaking in July 2016.  While it is accepted that premiums are still at a very high level for many people, such statistics indicate at the very least a greater degree of stability in the market on an overall basis.  I believe that the endeavours of the Working Group have contributed to this positive trend in pricing, as well as putting in motion much needed reform in other related areas, such as data transparency, the interaction between insurance companies and consumers, and the personal injuries claims environment.  While there is still much work to be done, I consider that the Cost of Insurance Working Group project has already proven to be a worthwhile and fruitful exercise overall.  In addition, I am of the view that its work must continue to be a priority for Government and would urge all relevant Departments to continue prioritising the implementation of the recommendations of the Reports.

Finally, I would recommend drivers who are seeking or renewing insurance to consult the Competition and Consumer Protection Commission website, which has a highly informative section regarding the purchase of car insurance generally.  One of the key tips listed to help cut costs is to “shop around” and “always get quotes from several insurance providers when you need to get or renew insurance”.