Written answers

Thursday, 18 October 2018

Department of Finance

Insurance Industry Regulation

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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109. To ask the Minister for Finance if it is planned for the national claims information database to focus solely on motor insurance claims; if it will include claims that fall under employer and public liability insurance; and if he will make a statement on the matter. [43073/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The focus of the National Claims Information Database in the first instance will be on private motor insurance claims. However, I recognise that there is a view from some stakeholders that it would be desirable to expand the scope of the database to other lines of business. For this reason, the Central Bank (National Claims Information Database) Bill 2018 has been drafted in such a way as to facilitate this expansion at a later stage, should it be considered feasible to collect other types of non-life insurance including employer liability and public liability, in addition to private motor insurance. The legislation sets out a procedure for this to happen.

It should be noted that the Cost of Insurance Working Group did give some consideration to expanding its scope from the outset, however it came quickly to the view that the database project is a complex one with many moving parts. It felt strongly that since we were entering into new territory, it is essential that the motor element of the Database is operating effectively and bedded down properly before consideration is given to expanding it to include other lines of business. The Working Group was also of the view that to expand the scope of the database from the outset would inevitably have implications for the timeline of its commencement. I therefore believe that the priority now should be to enact the Central Bank (National Claims Information Database) Bill as soon as is possible, and I am hopeful that with the cooperation of all parties in the Houses, it can be considered and approved expeditiously in order that the database is in place and operational for the start of next year.

You will also be aware that the Cost of Insurance Working Group in its Report on the Cost of Employer and Public Liability Insurance identified the second half of 2019 as the most appropriate time to expect the Central Bank to have formed a view on the effectiveness of the motor element of the database and to have conducted its analysis on the feasibility and merit of extending it to Employer and Public Liability Insurance. In the context of a project of this nature, I think this is a reasonable timetable and the Deputy can rest assured that myself and Minister of State D’Arcy will be monitoring this issue very closely, as I agree that if the feasibility of expanding the scope of the database can be established, then the additional information generated should be very helpful in understanding the employer/public liability claims environment.

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