Michael McGrath (Cork South Central, Fianna Fail)
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I welcome the commencement of the information sharing arrangements between An Garda Síochána and the Motor Insurance Bureau of Ireland (MIBI) which will help make our roads safer.

The Irish Motor Insurance Database (IMID) will provide a resource for An Garda Síochána to combat uninsured driving, enabling it to verify to see if a vehicle is insured and if the driver is covered to drive it. This database was established using the data sharing agreement between An Garda Síochána and the MIBI as provided for in the Road Traffic and Roads Act 2023. One of the key principles behind that legislation was to facilitate the sharing of insurance data with An Garda Síochána so as to facilitate easier identification of uninsured vehicles operating on Irish roads. According to the latest Motor Insurers Bureau of Ireland (MIBI) estimates, 1 in every 12 vehicles are uninsured.

The new database is of benefit both from a safety and a cost perspective. The cost of uninsured drivers is borne by law-abiding drivers though higher insurance premiums, equivalent to around €30-€35 attributable to every premium sold. As such, reducing the level of uninsured driving, including through the use of the new database, could thereby help lower costs for policyholders.

Over time, as this new law enforcement resource is utilised and as the number of uninsured vehicles on Irish roads reduce, it is expected this will lead to a reduction in the number of claims caused by uninsured vehicles received by the MIBI. A reduction in claims should in turn reduce the annual compensation payments to the victims of road traffic accidents involving uninsured vehicles provided by the MIBI. Should this be achieved, this should have a knock on impact on the levy applied on all motor insurers operating in Ireland, which forms part of insurers’ cost base.

More broadly, I wish to reassure the Deputy that this Government has continued to target policy measures to address the cost of insurance, through the Action Plan for Insurance Reform. Key achievements include the new Personal Injuries Guidelines, which have reduced average award levels by nearly 40 per cent, including for motor claims.

According to CSO data for October 2023, the price of motor insurance reduced by 15 per cent since the implementation of the Guidelines, and was 42.9 per cent lower than its peak in July 2016. It is my expectation that over time, the cumulative implementation of the Action Plan measures will generate additional gains for motor insurance customers.

Minister of State Carroll MacNeill will be meeting shortly with the main insurance firms here in order to stress the need to reflect all savings from this reform agenda in their product offering, including via lower premiums.

I also look forward to the upcoming National Claims Information Database motor report, which will provide important insights into the health of the motor insurance market. This rich data source will continue to support Government in monitoring the impact of reforms, including on the premiums paid by consumers.

Both I and the Minister of State Carroll MacNeill, along with officials, will continue to engage on all aspects of insurance reform, including motor insurance issues. These matters remain a priority for this Government.