I welcome the publication of the Report on the Cost of Motor Insurance by Minister for Finance, Michael Noonan TD, and Minister of State for Financial Services, Eoghan Murphy TD. The recommendations, approved by Government, include actions to:
- Address the lack of transparency in the claims area, through the establishment of a national claims information database which will be located in the Central Bank;
- Provide enhanced guidance in how to determine compensation for personal injuries claims, through the establishment of a Personal Injuries Commission;
- Address the increasing level of uninsured driving, through the establishment of a fully functioning database which will allow the Gardaí to check insurance compliance by the use of technology such as Automatic Number Plate Recognition; and
- Address the issue of suspected fraud, through the establishment of a database that will be funded by industry but held by an independent body and that will take into account data protection concerns.
This publication of this report is positive news for motorists. My colleague, Minister of State for Financial Services, Eoghan Murphy, has told me that these recommendations, once implemented, aim to ensure greater stability in the pricing of motor insurance.
Motorists have been hit by sharp increases in insurance premiums. The implementation of these recommendations will lead to more transparency in the insurance market, end the volatility that we’ve seen in the past, and also see the market opened up to new providers.
In the interim, before the measures are fully implemented, we will make it mandatory for insurance companies to explain why they are increasing the cost of an individual’s premium.
Fine Gael is committed to continuing to work to find reasonable solutions that will have a lasting impact on the Insurance Sector.