Pearse Doherty (Donegal, Sinn Fein)
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81. To ask the Minister for Finance his views on the recently published Private Motor Mid-Year Report of the National Claims Information Database; if he will consider measures to ensure that recent reforms in the insurance market are passed on to consumers in the form of reduced insurance prices; and if he will make a statement on the matter. [21541/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I welcome this first mid-year report of the National Claims Information Database (NCID) on private motor insurance, which contains a number of positive messages. At the outset, against the backdrop of high inflation, the report indicates that the average cost of a motor premium declined by a further 5 per cent in the first 6 months of 2022, to €578. On a quarterly basis, average earned premiums have now reduced by 19 per cent since their peak in Q4 2017. I welcome this downward trend, and believe it indicates that the Government’s targeted reforms are having a positive impact for motorists.

NCID data show that the Personal Injuries Assessment Board (PIAB) is the most cost effective route for settling claims. For the majority of claims (total settled cost of less than €100k), the average compensation award amount was similar for the PIAB and litigated claims; however, legal costs for litigated claims were over 20 times higher.

These legal expenses adversely impact the overall cost of claims, which is acknowledged to be the main driver of the cost of insurance. The clear message from the report is therefore that it is in everyone’s interest that more claimants settle at the PIAB stage. This is why the Government prioritised the Personal Injuries Resolution Board Act 2022, which is being commenced in stages, and aims to increase the number of cases being settled by the Board and without recourse to costlier litigation.

Following the enhancement of the NCID, this is now the second report to contain data on the Personal Injuries Guidelines. It shows that for claims settled under the Guidelines either directly or through the PIAB in the first 6 months of 2022, the average cost was between 34 and 47 per cent lower than claims settled in 2020 under the Book of Quantum. I welcome this significant reduction in costs, and believe it is further evidence that the Guidelines are working.

It is important to recognise that it will be some time before we see the full impact of the Guidelines on litigated claims, which account for the majority of total injury claims costs. Notwithstanding this, I believe these early findings are positive, and that it is incumbent on insurers to ensure that the savings being generated by the Guidelines, as well as the Government’s many other reforms, are being reflected in premiums.

In conclusion, the NCID has proven to be a key source of verified data on the insurance market, and a vital tool for policymakers. The addition of more frequent reporting, through these mid-year publications, will enable Government to continue monitoring developments in the market, and to assess the impact of our reform package in a timely manner, in order to ensure that reforms are delivering, and hold industry to account.