Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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207. To ask the Minister for Finance the status of his plans to implement reforms in view of the increasing cost of car insurance premiums; the latest discussions his Department has had on the issue; the persons or bodies with which the discussions took place; and if he will make a statement on the matter. [6706/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government’s Action Plan for Insurance Reformcontains a range of deliverables, including legislation where required, in a number of Government Department policy areas. Work is already underway in relation to certain areas, including:

- increasing market transparency through the National Claims Information Database (NCID), including for employer and public liability insurance;

- reviewing the duty of care legislation;

- providing for the Judicial Council’s accelerated adoption by 31 July 2021 of new personal injuries guidelines to replace the Book of Quantum;

- consideration by the Department of Justice of the Law Reform Commission’s recent Report on Capping Damages in Personal Injuries Actions;

- looking at how to further enhance the role of the Personal Injuries Assessment Board; and,

- making proposals on increasing competition in the Irish insurance market.

In addition to this work, there has been recent intensive engagement with key stakeholders by Minister of State Fleming, including meetings with the major insurers, the Alliance for Insurance Reform and industry representatives Insurance Ireland.

With regard to the specific issue of the cost of motor insurance premiums, I would draw the Deputy’s attention to data from the Central Bank’s NCID Private Motor Insurance Report, published in November. This shows the earned premium for private motor insurance decreased by 9 per cent to the end of 2019 from its mid-2018 peak. I would reasonably expect that the next report – covering 2020 – will show further reductions. Separately, the most recent data from the Central Statistics Office’s (CSO) Consumer Price Index indicates that motor premiums have reduced by just over 30 per cent from their July 2016 peak. While for methodological reasons, these datasets are not directly comparable, both have indicated the same downward trend for some time. This in part reflects the positive work done by the Cost of Insurance Working Group, and it is the Government’s intention to build on this success viathe new Action Plan.

In conclusion, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a priority issue for this Government. Both I and Minister of State Fleming will continue to play a lead role in this policy area.

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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208. To ask the Minister for Finance the position regarding vehicle insurance payments for those who have been cocooning due to Covid-19; the rebate options open to them; and the details of same. [6725/21]

Gerald Nash (Louth, Labour)
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223. To ask the Minister for Finance his plans to ensure insurance companies provide rebates and premium reductions to customers in the case of a decline of claims costs related to Covid-19; and if he will make a statement on the matter. [7018/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 208 and 223 together.

At the outset, working to protect insurance policyholders during and after the COVID-19 crisis is a priority issue for Government. As such, it is included within the Programme for Government and the recently launched Action Plan for Insurance Reform. Since the onset of the COVID-19 pandemic, I have consistently called on insurers to treat their customers honestly, fairly and professionally.

I can assure the Deputies that both Minister of State Fleming and I have had extensive engagement with motor insurers and other key policy stakeholders throughout 2020 and that this will continue into 2021. At my meeting with Insurance Ireland in April 2020, I called on insurers to be pro-active and generous in relation to their treatment of motor insurance customers during the COVID-19 crisis. In particular, I noted what was likely to be a significant reduction in claims for this period due to the travel restrictions that were in place at that time. This ultimately resulted in a number of insurers announcing a range of forbearance measures and motor insurance rebates for policyholders. In addition, insurers have agreed to further review the situation if extended Covid-19 restrictions on movement result in sustained lower road usage and claims frequency this year.

Most recently as part of a comprehensive engagement on the Government’s insurance reform agenda with a wide range of stakeholder interests, including Insurance Ireland, Minister of State Fleming concluded a series of meetings with the main Irish insurers. He again raised the need for industry to respond to both the Government’s ongoing reforms and COVID-19 pandemic by lowering premiums, to continue to offer forbearance measures, and to expand their risk horizon (such as providing more cover for younger drivers).

While Insurance Ireland recently announced a continuance of forbearance measures on behalf of a number of its members, including a number of measures directly targeting motor insurance policyholders, both I and Minister of State Fleming will continue to raise this issue with insurers in the coming weeks, particularly in light of the stricter restrictions on movement currently in place as a result of Government measures to combat the pandemic.

Finally, the Deputy has asked about rebates for those that have been cocooning, due to their cars being off the road. The methodology of any premium relief process is a matter outside of my control and it is important to note that each insurance company will make their own decisions as to the level and manner of financial supports, including whether to issue refunds and/or discounts based on their own particular circumstances.