Steven Matthews (Wicklow, Green Party)
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283. To ask the Minister for Finance if his attention has been drawn to cases of car insurance quotes increasing significantly from previous years, despite no significant change in the circumstances of the applicant; the efforts he is making to engage with this sector to avoid this financial impact on customers; and if he will make a statement on the matter. [4771/23]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will appreciate, I am unable to comment on individual cases. Moreover, neither the Minister for Finance, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance (the Solvency II Directive).  

It understood that firms use a combination of actuarial-based rating factors in making their individual decisions on whether to offer motor cover and what terms to apply. In addition, insurers price in accordance with their specific claims experience and do not use the same combination of rating factors. According to Insurance Ireland, premium levels may increase across the board due to the current market trends, however, a customer’s own premium might increase because their level of risk has increased. Equally, premium levels may also reduce based on the market or a lower risk profile.

In cases where an individual is unhappy with a quotation received from an insurer, it is suggested that the policyholder, in the first instance, contact their provider, and then alternative options. It is understood that this regularly results in a lower premium being quoted.

Regarding the cost of motor insurance generally, data from the Central Statistics Office (CSO) for December shows that prices continued to decline during 2022, reducing by 10.4 per cent year-on-year, despite an 8.2 per cent increase in consumer prices over the same period. This general downward trend is separately validated by data from the National Claims Information Database (NCID), with the latest motor report indicating that the average earned premium per policy peaked in Q4 2017, and subsequently declined by 17 per cent to €590 in Q4 2021.

This evident decline underscores the impact of a number of factors, including the positive effect of Government reforms on motor insurance. According to the third Action Plan for Insurance Reform Implementation Report, published in November 2022, around 90 per cent of initiatives in the current reform agenda are completed or ongoing. These include the Personal Injuries Guidelines, which have reduced average award levels by nearly 40 per cent, including for motor claims.

It is the Government’s expectation that all savings resulting from the Action Plan are passed onto customers, especially in light of current inflationary pressures. Finally, Minister of State Carroll MacNeill will be meeting with the main insurers in the Irish market next month in order to reiterate this message and for the need for lower claims costs to be reflected in reduced premiums.