Charlie McConalogue (Donegal, Fianna Fail)
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119. To ask the Minister for Finance the status of efforts to reduce the cost of car insurance; the number of recommendations and associated actions that have been completed to date (details supplied); and if he will make a statement on the matter. [40330/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy should note that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank can interfere in the pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on the risks they are willing to accept.

However, 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. There is also a commitment that the Working Group will prepare quarterly updates on its progress.

The sixth quarterly update was published by the Working Group on 30^thAugust 2018. It shows that, in total, of the 56 separate applicable deadlines within the Action Plan set to the end of Q2 2018, 44 relate to actions which have now been completed. Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”.

It is envisaged that the implementation of all the recommendations 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 insurance market.

In this regard, it should be noted that the most recent CSO data (for August 2018) indicates that private motor insurance premiums have decreased by over 20% since peaking in July 2016. While the CSO statistics indicate a greater degree of stability on an overall basis, these figures represent a broad average and therefore I appreciate many people may still be seeing increases. However, I am hopeful that the improved stability in pricing will be maintained and that premiums should continue to fall from the very high levels of mid-2016.

Finally, it may be of interest to the Deputy’s constituents that the Competition and Consumer Protection Commission website has an informative section regarding the purchase of car insurance – - and 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”.