Press release
Publication of the Cost of Insurance Working Group’s Sixth Quarterly Progress Update
Published on
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Published on
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The Cost of Insurance Working Group – chaired by the Minister of State for Financial Services and Insurance, Michael D’Arcy TD – has published its Sixth Progress Update. This quarterly report is the second to provide details on the implementation of both the Report on the Cost of Employer and Public Liability Insurance and the Report on the Cost of Motor Insurance.
In terms of actions to be completed by the end of Q2 2018, a total of 71 separate applicable deadlines were set out within the Action Plans of the two Reports. Of these, 58 relate to actions which have now been completed, equating to an 82% ‘strike rate’. While the goal is to improve upon this completion rate, it is important to consider the ground that both reports are laying for a more transparent and fairer insurance environment going forward.
For instance, much progress has been made on putting in place a fully-functioning National Claims Information Database with the recently published Central Bank (National Claims Information Database) Bill 2018. The enactment of this Bill will provide much greater insight into, in particular, the identification of settlement channel information which should lead to a greater consistency in award levels and a greater use of the Personal Injuries Assessment Board. This would result in a more stable claims environment, in turn positively influencing the price of insurance paid by consumers.
In addition, the second and third Reports of the Personal Injuries Commission, which have merged into one substantive report, will go to Cabinet for approval to publish in September, and the implementation of its key recommendations should impact upon the awarding of personal injury damages in the future.
Another area of significant progress has been the markedly enhanced levels of engagement and cooperation between An Garda Síochána and the insurance industry since the creation of the Fraud Roundtable. This has led not only to the agreement of a protocol between the Gardaí and insurers in relation to the reporting of suspected fraudulent personal injury claims but also a commitment for the Garda National Economic Crime Bureau and Insurance Ireland’s Anti-Fraud Forum to meet on a regular basis in order to discuss and act upon current and ongoing relevant issues in this area.
The Working Group and associated sub-groups have been continuing to meet regularly in order to ensure the focus remains fixed upon the timely implementation of all of the recommendations of the Report on the Cost of Motor Insurance and the Report on the Cost of Employer and Public Liability Insurance. Minister D’Arcy has re-emphasised that this is >“to ensure that consumers and businesses can obtain insurance cover at a reasonable and fair price, and that by introducing greater transparency into the market we can remove the volatility that we have witnessed over the last number of years.”
In this regard, it should be noted that the most recent CSO/CPI data (for July 2018) indicates that private motor insurance premiums have decreased by over 20% since peaking in July 2016. While it is accepted that premiums are still at a very high level for many people, such statistics indicate at least a greater degree of stability in the market on an overall basis.
ENDS
The Cost of Insurance Working Group was initially chaired by the Minister of State at the Department of Finance, Mr Eoghan Murphy T.D. However, following his appointment as Minister for Housing, Planning and Local Government, he was replaced as Chair by Minister of State for Financial Services and Insurance, Mr Michael D’Arcy T.D. The Working Group is comprised of representatives from the Department of Finance, the Department of Business, Enterprise and Innovation, the Department of Justice and Equality, the Central Bank of Ireland, the State Claims Agency, and the Personal Injuries Assessment Board.
The Report on the Cost of Motor Insurance was published in January 2017 and made 33 recommendations with 71 associated actions to be carried out in an agreed timeframe. The Report on the Cost of Employer and Public Liability Insurance was published in January 2018 and made 15 recommendations with 29 associated actions to be carried out in an agreed timeframe.
There is a commitment in both Reports that the Working Group will prepare quarterly updates on its progress. The first update was published in May 2017, the second in July 2017, the third in October 2017, the fourth in January 2018 and the fifth in May 2018, and all five provided details on how the implementation of the recommendations were progressing, with a particular focus on the action points which were due for completion during the respective quarters – 10 in the first quarter, 17 in the second quarter, five in the third quarter, 14 in the fourth, and 12 in the fifth across the two Action Plans.
This Sixth Progress Update is the second such quarterly report to encompass both the Motor and EL/PL Reports and provides details on how the implementation of the recommendations is progressing, with a particular focus on the 14 actions which were due for completion during Q2 from both Reports. 8 of the 14 actions have been completed. This consists of two action points from the Motor Report and six from the EL/PL Report.
While six actions which were scheduled for delivery in Q2 2018 have not been fully completed, it is important to note that significant progress has been made in relation to these action points, many of the delays have previously been signalled in earlier quarterly reports, and all efforts will continue to be made to ensure that all of the proposed measures from the two Reports are put in place as soon as possible. Also, it should be noted that two of the three actions not achieved on time in Q1 2018 have now been accomplished.
The five Q2 2018 Action Points from the Motor Report which have not been fully completed are:
The one outstanding Q2 Action Point from the EL/PL Report relates to the recommendation that consideration be given to training pending the enactment of the Judicial Council Bill and consultation with the Courts Services is ongoing.