Bernard Durkan (Kildare North, Fine Gael)
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286. To ask the Minister for Finance the extent to which insurance costs in Ireland compare with such costs across Europe; and if he will make a statement on the matter. [10041/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is my understanding that it is difficult to obtain reliable data to compare the cost of insurance here to that in other European jurisdictions. I am informed that international organisations, such as the OECD and Eurostat, do not publish comparative data on the cost of insurance between countries. Eurostat publishes Harmonised Index of Consumer Prices (HICP) data with regard to insurance, but this only provides a comparison of the rate of inflation for different types of insurance such as motor and travel insurance. Accordingly, it is not possible to compare the underlying cost of each insurance type. In addition, this does not include a comparative index for the price of insurance to businesses. In any event, any international comparisons based on price alone would not take into account relevant factors such as the various regulatory environments and liability systems in place in different jurisdictions. 

However, increased availability of data in relation to insurance, and understanding the factors that influence insurance costs, is important. In this regard, the National Claims Information Database (NCID) is unique in Europe in terms of the transparency it provides into the Irish insurance sector. To date, the Central Bank has published NCID reports on private motor insurance and employers’ liability, public liability and commercial property insurance. These contain a wealth of information regarding the key insurance markets for consumers and businesses, including data on claims costs and average earned premiums.

The NCID is continually looking to improve the transparency and insight that can be provided through these reports, and each data collection has been amended to include more information. As such, I believe that it will continue to serve a vital role in helping us to understand the impact of market developments on insurance costs into the future. In addition, over time the NCID should enable stakeholders to assess the impact of the wide range of Government reforms already undertaken to improve the affordability of insurance, and will enable us to better-tailor any future measures to increase the competitiveness of this sector.

Finally, I would note that according to the latest CSO Consumer Price Index for January 2022, the price of motor insurance decreased by a further 9.3 per cent year-on-year. This is especially of note in light of the 5 per cent rise in the general price level over the corresponding period. As such, it is my hope that consistent implementation of measures under the current reform agenda will help to maintain this downward trend, while also improving the affordability of other types of insurance for businesses, community and voluntary groups.